Suppose Aggregate Output Is Demand- Determined

question 89

Multiple Choice

Suppose aggregate output is demand- determined. The simple multiplier will increase as a result of

• A)a decrease in the marginal propensity to consume.
• B)an increase in investment.
• C)an increase in autonomous consumption.
• D)an increase in the marginal propensity to consume.
• E)a decrease in autonomous consumption.

---

Definitions:

Desirable Stimulus

An external event or factor that evokes a positive or wanted response from an individual or organism.

Types of Conditioning

Various forms of learning, including classical conditioning, operant conditioning, and observational learning.

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response when the reinforcement is no longer presented.

Forgetting

The inability to retrieve memories or information that was once stored in the brain, often due to decay or interference.