Suppose Aggregate Output Is Demand- Determined

question 46

Multiple Choice

Suppose aggregate output is demand- determined. Suppose a decrease in autonomous investment expenditure of $20 million reduces equilibrium national income by $50 million. The marginal propensity to spend is equal to

• A)0.4.
• B)- 0.6.
• C)- 2.5.
• D)2.5.
• E)0.6.

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Definitions:

Automatic Thoughts

Instantaneous, reflexive thoughts that occur in response to a stimulus, often without conscious awareness.

Coping Thoughts

Cognitive strategies that individuals use to manage and deal with stress, adversity, or challenges in a constructive way.

Flawless Manner

An unrealistic expectation of performing tasks or duties perfectly, without mistakes or flaws.

Cognitive Modeling

A technique in psychotherapy where the therapist demonstrates a desired behavior or cognitive process as a way for the client to learn and adopt new skills or ways of thinking.