Suppose GDP in the United States Were to Fall by $8

question 2

Multiple Choice

Suppose GDP in the United States were to fall by $8 billion. You would expect to see an immediate reduction in disposable income of

• A) something over $8 billion depending on the size of the multiplier.
• B) something under $1 billion if there were no response by the Federal Reserve Board.
• C) some insignificant amount because demand from abroad would fill the gap in aggregate demand.
• D) approximately $6 billion.
• E) none of the above.

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Definitions:

Opposition

A resistance or dissent, characterized by a direct contradiction or counteraction to a proposal or position.

I Proposition

A type of categorical proposition that asserts some, but not all, members of a subject class are also members of a predicate class.

Traditional Square

A diagrammatic representation of the logical relationships between categorical propositions in classical logic.

Existential Import

Pertains to the implication that some assertions within categorical logic assert the existence of at least one instance of something.