-Refer to Figure 14-9

question 14

Multiple Choice

-Refer to Figure 14-9.If the aggregate expenditure line shifts from AE₁(r = 8%) to AE₂(r = 10%) ,which of the following is the most likely cause of that shift?

• A) An increase in the money supply
• B) A decrease in the money supply
• C) An increase in government purchases
• D) A decrease in government purchases
• E) An increase in taxes.

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Definitions:

Hypothetical

Involving or based on a suggested idea or theory rather than actual evidence.

Presupposition

Something assumed beforehand at the beginning of a line of argument or course of action.

Group Decision Making

The process by which a group of individuals come together to make a decision, typically through discussion and considering multiple perspectives.

Truth-Seeking

Means that a person has intellectual integrity and a courageous desire to actively strive for the best possible knowledge in any given situation. A truth-seeker asks probing questions and follows reasons and evidence wherever they lead, even if the results go against his or her cherished beliefs.