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:

Confidence

the feeling or belief that one can rely on someone or something; firm trust. It's also a feeling of self-assurance arising from one's appreciation of one's own abilities or qualities.

Leading Questions

Questions framed in a way that suggests a particular answer or influences the response, often used in legal settings, interviews, and surveys to shape the respondent's answer.

Cochran and Colleagues

A group of researchers known for their contributions to a specific field or study, though the context of their work would determine their specific domain of expertise.

Eyewitnesses

Individuals who have directly observed an event and can provide a first-hand account or testimony of that event.