In the Income-Expenditure Model, If Autonomous Investment Increases by $10

question 3

Multiple Choice

In the income-expenditure model, if autonomous investment increases by $10 billion, _____

• A) the aggregate expenditure line shifts upward by $10 billion.
• B) planned saving increases by $10 billion.
• C) the aggregate expenditure line shifts downward by $10 billion.
• D) planned saving decreases by $10 billion.
• E) the equilibrium level of real GDP demanded increases by $10 billion.

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Definitions:

Visual Cortex

The region of the cerebral cortex responsible for receiving and interpreting sensory signals from the eyes.

fMRI

Functional Magnetic Resonance Imaging, a neuroimaging procedure that measures brain activity by detecting changes associated with blood flow.

Flashing Pattern

A visual signal sequence where light is turned on and off in a particular rhythm or sequence, often used in warning signals or communication devices.

Phi Effect

A visual illusion where stationary objects are perceived to be moving due to rapid sequential light stimulation.