Use the Following Situation to Answer the Question : Situation

question 122

Multiple Choice

Use the following Situation to answer the question : situation 20-1
Assume a closed economy with no government. Suppose that autonomous consumption equals $400, planned investment equals $500, and the mpc equals 0.9.
-Using the information contained in Situation 20-1,if planned investment decreases by $100,the equilibrium aggregate output will change by

• A)-$1,000.
• B)$-100.
• C)$100.
• D)$1,000.

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Definitions:

Achievement Motivation

The driving force behind striving to succeed or meet standards of excellence.

Statistical Analysis

The process of collecting, analyzing, interpreting, and presenting data to uncover underlying patterns and trends.

Face Validity

The extent to which a test appears to measure what it is intended to measure at face value, based on subjective judgment rather than objective criteria.

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A trait dimension indicating the extent to which people experience anxiety during social encounters or when anticipating social encounters.