Figure 36-7 In Figure 36-7, There Are Three Aggregate Expenditure Functions

question 162

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 B to A?

• A) A recession in Southeast Asia
• B) An economic expansion in Japan
• C) A depreciation of the dollar
• D) An increase in the interest rate

---

Definitions:

Empiricism

A theory in epistemology that states knowledge comes only or primarily from sensory experience.

Observations

The act of monitoring or recording systematically selected variables or behaviors in research to gather data.

Assumption

A statement taken for granted or accepted as true without proof, used as a basis for reasoning or argument.

Quantitative Research

A research method focusing on obtaining data that can be quantified and analyzed statistically to draw conclusions and test hypotheses.