Everything Else Remaining the Same, an Increase in the Marginal

question 3

Multiple Choice

Everything else remaining the same, an increase in the marginal propensity to consume ________ the slope of the AE curve and ________ equilibrium expenditure.

• A)decreases; increases
• B)increases; increases
• C)decreases; decreases
• D)increases; decreases
• E)does not change; does not change

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Definitions:

Preoperational Thought

A stage in Jean Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, characterized by symbolic thinking, egocentrism, and a lack of logical operations.

Scribbles

The early forms of drawing and writing by young children, typically consisting of random lines and marks.

Crayon

A stick of colored wax, chalk, or charcoal for drawing or coloring.

Symbolic Function

The ability to use symbols, words, or objects to represent something that is not physically present.