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Let AE = Aggregate Expenditures, C = Consumption, IP =

question 186

Multiple Choice

Let AE = Aggregate Expenditures, C = Consumption, IP = Planned Investment,
G = Government Purchases. Consider a simple aggregate expenditures model, where
AE = C + IP + G and all components of aggregate expenditures except consumption are autonomous. In this model, the multiplier is _____.


Definitions:

Somatic

Pertaining to the body, especially as distinct from the mind or psychological factors.

Auditory

Refers to anything related to the sense of hearing or sound perception.

Olfactory Hallucinations

Sensory hallucinations involving the perception of smells that are not present in the environment.

Auditory Hallucinations

The experience of hearing sounds or voices that are not present in the external environment.

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