Based on Our Understanding of the Model Presented in Chapter

question 22

Multiple Choice

Based on our understanding of the model presented in Chapter 3,we know that an increase in c₁ (where C = c₀ + c₁YD) will cause

• A)the ZZ line to become steeper and a given change in autonomous consumption (c₀)to have a smaller effect on output.
• B)the ZZ line to become steeper and a given change in autonomous consumption (c₀)to have a larger effect on output.
• C)the ZZ line to become flatter and a given change in autonomous consumption (c₀)to have a smaller effect on output.
• D)the ZZ line to become flatter and a given change in autonomous consumption (c₀)to have a larger effect on output.

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Definitions:

Feasibility Report

An analysis that assesses the practicality and potential success of a proposed plan or project.

Practical

Relating to or concerned with the actual doing or use of something rather than with theory and ideas.

Recommendation Report

a document that evaluates options or strategies and suggests a particular course of action based on analysis and findings.

Proposal

A plan or suggestion, especially a formal or written one, put forward for consideration or discussion by others.