If the Consumption Function Is C = 200 + 0

question 189

Multiple Choice

If the consumption function is C = 200 + 0.8Y and there is a $10 million increase in investment spending, then the aggregate demand curve will shift horizontally to the right by:

• A) $8 million.
• B) $12.5 million.
• C) $2 million.
• D) $50 million.

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Definitions:

Words

Basic units of language or speech that convey meaning and can be spoken or written.

Telegraphic Speech

A developmental stage in children's language acquisition where sentences are formed with mostly nouns and verbs, omitting unnecessary words.

Overregularization

A language-learning error made by children, in which they apply regular grammatical rules to words that require irregular forms.

Semantic Slanting

The deliberate choice of words to shape and influence the listener's or reader's perception, often used in persuasion and propaganda.