Suppose Business Decision Makers Become More Optimistic About the Future

question 21

Multiple Choice

Suppose business decision makers become more optimistic about the future and, as a result, increase their investment spending by $20 billion. If the economy's marginal propensity to consume is 0.75, the equilibrium level of aggregate real GDP will increase by:

• A) $15 billion.
• B) $20 billion.
• C) $50 billion.
• D) $80 billion.

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Definitions:

Impaired Home Maintenance

Difficulty in performing or completing daily tasks required to keep a home environment safe and sanitary, often due to physical or cognitive limitations.

Disturbed Sensory Perception

A condition where an individual's processing of sensory information is altered, leading to misinterpretation of the environment.

Ineffective Coping

A psychological state where an individual is unable to successfully manage stressful events or conditions, adversely affecting their health and well-being.

Unilateral Neglect

A neurological condition in which a patient is unaware of and does not respond to one side of the body or environment, often after a stroke.