If Income Increases by $10,000,government Purchases Are Fixed at $1,000,investment

question 123

Multiple Choice

If income increases by $10,000,government purchases are fixed at $1,000,investment spending is fixed at $2,000,net exports are fixed at $500,and the marginal propensity to consume is 0.70,by how much does aggregate expenditure increase?

• A) $700
• B) $2,000
• C) $7,000
• D) $1,000
• E) $1,400

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Definitions:

Analogy

Examining and contrasting two objects, typically to explain or shed light on them.

Emotional Appeals

Persuasive techniques that aim to elicit emotional responses from the audience to sway their opinion or decision.

Logical Appeals

Strategies of argumentation that use reasoning and evidence to convince an audience of a particular point of view.

Persuasive Messages

Communications designed to influence the attitudes, beliefs, or actions of others through argument or appeal.