In a Simple, Private Economy, Suppose That the MPC Is

question 38

Multiple Choice

In a simple, private economy, suppose that the MPC is 0.8 and investment rises by $20 million.At the new equilibrium, how much will saving have increased?

• A)$8 million
• B)$16 million
• C)$20 million
• D)$80 million
• E)$100 million

Understand the concepts of attributions and how they influence social perception and interaction.

Explain the difference between internal and external attributions and how they impact judgement.

Identify and describe various biases in person perception, including confirmation bias, the fundamental attribution error, and the self-fulfilling prophecy.

Analyze the effects of first impressions and snap judgments on interpersonal relations.

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Definitions:

External Locus

A psychological term indicating when individuals believe that external forces or events control their life outcomes, rather than their own efforts.

Self-Serving Bias

A common cognitive bias that causes individuals to attribute their successes to internal factors and failures to external factors.

Introvert

Describes a person who tends to be more focused on internal thoughts and feelings rather than seeking external stimulation.

Extravert

An individual characterized by an outgoing, energetic, and sociable disposition.