If the Marginal Propensity to Consume Is 2/3,and There Is

question 8

Multiple Choice

If the marginal propensity to consume is 2/3,and there is no investment accelerator or crowding out,a $20 billion increase in government expenditures would shift the aggregate demand curve right by

• A)$30 billion, but the effect would be larger if there were an investment accelerator.
• B)$30 billion, but the effect would be smaller if there were an investment accelerator.
• C)$60 billion, but the effect would be larger if there were an investment accelerator.
• D)$60 billion, but the effect would be smaller if there were an investment accelerator.

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Definitions:

Competition

Results when members of a species attempt to use a resource that is in limited supply.

Secondary Succession

The process of ecological regeneration that occurs in an environment where a disturbance has destroyed a pre-existing community but left the soil intact.

Sequence of Events

The chronological arrangement or order in which events or steps occur.

Forest

A large area covered predominantly with trees and undergrowth.