Scenario 34-2

question 90

Multiple Choice

Scenario 34-2.The following facts apply to a small,imaginary 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 increases households' wealth by $500,and there is an operative crowding-out effect.
• B)A stock-market boom increases households' wealth by $575,and there is an operative crowding-out effect.
• C)An economic boom overseas increases the demand for U.S.net exports by $600,and there is no crowding-out effect.
• D)Aggregate demand could increase by $1,500 in response to any of these events.

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Definitions:

Java.lang

The fundamental package in the Java programming language that provides classes that are essential to the design of the Java programming language.

Implements

A keyword in Java used by classes to specify that they will provide implementations for the methods defined in an interface.

Interface

In programming, an interface is a reference type that defines a set of abstract methods that a class must implement.

Concrete Class

A class that has an implementation for all of its methods, as opposed to abstract classes which can contain unimplemented methods.