Scenario 34-1

question 119

Multiple Choice

Scenario 34-1. Take the following information as given for a small economy:
• When income is $10,000, consumption spending is $6,500.
• When income is $11,000, consumption spending is $7,250.
-Refer to Scenario 34-1. For this economy, an initial increase of $200 in net exports translates into a(n)

• A)$570 increase in aggregate demand when the crowding-out effect is taken into account.
• B)$800 increase in aggregate demand when the crowding-out effect is taken into account.
• C)$1,400 increase in aggregate demand in the absence of the crowding-out effect.
• D)$800 increase in aggregate demand in the absence of the crowding-out effect.

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Definitions:

Self-Report Inventories

Psychological assessment tools in which individuals provide subjective responses to questions about their own behaviors, thoughts, and feelings.

Orientation of Locus

The focus or positioning of control believed by a person to reside either internally within themselves or externally in the environment.

College Students

Individuals enrolled in a college or university program, who are often subject to unique social, academic, and developmental experiences.

Internal

Relating to or situated on the inside; internal processes or factors occur within an entity or organization.