The Term ____________________ Is Used to Refer to the Set

question 66

Short Answer

The term ____________________ is used to refer to the set of factors that initiate and direct behavior, usually toward some goal.

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Definitions:

Aggregate Expenditure

The total amount of spending in an economy, consisting of consumer spending, investment, government spending, and net exports.

Marginal Propensity

The ratio of the change in an economic variable (such as consumption spending) to the change in another variable (such as income).

Planned Investment

Expenditures on capital goods by firms, intended to increase their future production capacity.

Marginal Propensity

The fraction of an additional amount of income that is spent on consumption.