Which One of the Following Will Lead to an Increase

question 143

Multiple Choice

Which one of the following will lead to an increase in the slope of the AE function?

• A)an increase in the marginal propensity to import
• B)an increase in the marginal tax rate
• C)a decrease in the marginal propensity to consume
• D)a decrease in the marginal propensity to save
• E)an increase in the marginal propensity to save

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Definitions:

Extrinsic Motivation

The desire to behave in a certain way to gain some external reward or to avoid some undesirable consequence.

Drive

An internal state of tension or arousal that is brought about by an underlying need and that an organism is motivated to reduce.

Tension

The state of being stretched tight, which can refer to physical objects or describe psychological strain and stress.

Homeostasis

The natural tendency of the body to maintain a balanced internal state in order to ensure physical survival.