The Figure Given Below Represents the Leakages and Injections in an Economy.?Figure

question 25

Multiple Choice

The figure given below represents the leakages and injections in an economy.?Figure 10.3??In the figure:?S₁ and S₂: Saving functions?I: Investment?G: Government spending?EX: Net exports

-In Figure 10.3, which of the following represents the paradox of thrift?

• A) A shift of the saving curve from S₂ to S₁
• B) A shift of the saving curve from S₁ to S₂
• C) A change in equilibrium real GDP from $100 to $200
• D) A change in equilibrium real GDP from $300 to $100
• E) A change in equilibrium real GDP from $100 to $400

---

Definitions:

Weighted Additive Rule

This rule is a decision-making strategy where alternatives are evaluated by multiplying each attribute's importance weight by its quantitative value, then summing these products to determine the best option.

Compensatory Rule

A decision rule used in consumer choice where the negative aspects of a product can be compensated by its positive aspects.

Price-Quality Relationship

The perceived association between the cost of a product or service and its quality, influencing consumer decision-making.

Product Signal

Indicators or features of a product that communicate its quality, authenticity, or prestige to consumers.