Suppose the Price Level Is Constant, Output Is Demand- Determined

question 23

Multiple Choice

Suppose the price level is constant, output is demand- determined, and the economy is closed with no government. If the consumption function is C = (2/3) Y, then the simple multiplier is

• A)2/3.
• B)1.
• C)2.
• D)3.
• E)- insufficient information to know.

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Definitions:

Inner Tensions

Internal conflicts or stresses that an individual experiences, often due to opposing desires or needs.

Moral Development

The process through which individuals evolve in their understanding of morals, ethical standards, and values, determining how they reason about moral decisions.

Authority

The power or right to give orders, make decisions, and enforce obedience, often within a specific context or hierarchy.

Personal Values

Fundamental values or ethics that steer a person's actions and choices.