Figure 36-7 ​

question 9

Multiple Choice

Figure 36-7
​
-In Figure 36-7, there are three aggregate expenditure functions (C + I + G + X − IM) for an open economy.Which of the following would cause a movement from A to B?

• A)An increase in interest rates
• B)An appreciation of the dollar
• C)A depreciation of the dollar
• D)An increase in the U.S.price level

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, structured as a pyramid with basic needs at the base and self-actualization at the top, illustrating human motivational drivers.

Safety Needs

As part of Maslow's hierarchy of needs, these are fundamental requirements for security and protection from physical and emotional harm.

Basic Trust

A term often associated with Erik Erikson's stages of psychosocial development, referring to the first stage where an infant's sense of security and trust in the world is developed.

Oral Sensory Stage

The first stage in Freud's psychosexual development, occurring in the first year of life, where pleasure centers on oral activities like sucking.