Refer to Figure 9.3 for the Following Questions

question 24

Multiple Choice

Refer to Figure 9.3 for the following questions.
Figure 9.3

-Suppose that in Figure 9.3, investment spending increases by $10 million, shifting up the aggregate expenditure line and GDP increases from GDP₁ to GDP₂. If the MPC is 0.9, then what is the change in GDP?

• A)$90 million
• B)$9 million
• C)$10 million
• D)$100 million

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Definitions:

Psychoanalysis

A therapeutic approach developed by Freud that emphasizes exploring unconscious motivations and conflicts as a means of resolving psychological distress.

Primary Ego Rule

A fundamental principle in psychoanalytic theory referring to the ego's management and regulation of impulses and desires.

Freud's View

The perspectives and theories developed by Sigmund Freud, particularly regarding the unconscious mind, dreams, and the dynamics of personality.

Psychoanalytic Theory

A theory of personality development and therapeutic framework that asserts human behavior is influenced by unconscious motives and conflicts, developed by Sigmund Freud.