The Sensitivity of GDP to Changes in Intended Investment Increases

question 52

Multiple Choice

The sensitivity of GDP to changes in intended investment increases as the

• A) marginal propensity to save declines.
• B) multiplier declines.
• C) slope of the consumption function declines.
• D) change in equilibrium declines.
• E) spending chain declines.

---

Definitions:

Prognosis

A prediction of the likely course of a psychological (or physical) disorder.

Mental Disorder

A broad category of conditions affecting mood, thinking, and behavior that impair an individual's ability to function in daily life.

Diagnosed

The process of identifying a disease or condition from its symptoms and diagnostic tests.

Cultural Background

The environment, traditions, values, and beliefs that influence an individual's identity and behaviors, shaped by the culture they grow up in or are a part of.