Between 2012 and 2013 the Government Reports That Investment Decreased

question 305

Multiple Choice

Between 2012 and 2013 the government reports that investment decreased by $400 billion. The government also estimates that the marginal propensity to save is 0.20. If the entire decrease in investment is autonomous, then real GDP

• A) decreases by $2000 billion.
• B) increases by $2000 billion.
• C) decreases by $80 billion.
• D) decreases by $320 billion.

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Definitions:

Longitudinal Study

A research approach that follows the same subjects over a period of time, allowing for the observation of changes or developments in the subject matter.

Stability and Change

Refers to the dynamic nature of systems, processes, or entities where certain attributes remain constant while others vary over time.

Menopause

A natural biological process marking the end of a woman's menstrual cycles and fertility, typically occurring in the late 40s or early 50s.

Cross-Cultural Research

The examination and comparison of behaviors, traditions, or psychological phenomena across different cultures.