Replacing the Simple Keynesian Consumption Function with the Function Based

question 90

Multiple Choice

Replacing the simple Keynesian consumption function with the function based on the permanent-income hypothesis results in a ________ short-run multiplier,implying a ________ stable private economy.

• A)higher,more
• B)higher,less
• C)lower,more
• D)lower,less

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Definitions:

Skid Marks

Visible marks left on a road surface by tires that have lost traction, often as a result of sudden braking.

Median

The middle number when numbers are in ascending or descending order.

Box-And-Whisker Plot

Also called a boxplot; a type of graph that shows all four quartiles and the least number; it is drawn to scale.

Fuel-Efficient

A description for vehicles or machines that use less fuel than the average for their category, leading to reduced operational costs and environmental impact.