Use the Following Situation to Answer the Question : Situation

question 60

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.
-Keynes believed that changes in autonomous spending were dominated by changes in

• A)consumer expenditure.
• B)autonomous consumer expenditure.
• C)investment spending.
• D)taxes.
• E)none of the above.

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Definitions:

Henry

The SI unit of inductance, defined as the inductance in a circuit when an electromotive force of one volt is produced by a current changing at one ampere per second.

Left-hand Generator Rule

A rule used to determine the direction of induced current when a conductor moves through a magnetic field, utilizing the left hand to align thumb, forefinger, and middle finger perpendicularly.

Magnetic Field

A magnetic field is a vector field that surrounds magnets and electric currents, exerting magnetic forces on moving electric charges and magnetic materials.

Exponential Curve

A natural curve that is the rate at which current can rise or fall in an inductor or the rate of charge and discharge for a capacitor.