Scenario 34-2

question 102

Multiple Choice

Scenario 34-2. The following facts apply to a small economy.
• Consumption spending is $6,720 when income is $8,000.
• Consumption spending is $7,040 when income is $8,500.
-Refer to Scenario 34-2. In response to which of the following events could aggregate demand increase by $1,500?

• A)A stock-market boom stimulates consumer spending by $300, and there is an operative crowding-out effect.
• B)A stock-market boom stimulates consumer spending by $550, and there is a small operative crowding-out effect.
• C)An economic boom overseas increases the demand for U.S.net exports by $550, and there is no crowding-out effect.
• D)An economic boom overseas increases the demand for U.S.net exports by $300, and there is no crowding-out effect.

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Definitions:

Toileting Self-Care Deficit

A situation in which an individual has difficulty or is unable to perform activities related to personal hygiene and using the toilet.

Cognitive Development

The process involving growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding.

Piaget's Formal Operations

The final stage of cognitive development according to Piaget, characterized by the ability to think abstractly and logically.

Insulin

A hormone produced by the pancreas that regulates blood glucose levels by facilitating the uptake of glucose into tissues.