In the Keynesian AE Model,if the Autonomous Components of Consumption,investment,government

question 143

Multiple Choice

In the Keynesian AE model,if the autonomous components of consumption,investment,government spending,and net export spending initially total $200 billion,and the MPS is 0.2,by how much will equilibrium output change if governments increase their spending by $5 billion?

• A)by $1 billion
• B)by $5 billion
• C)by $10 billion
• D)by $25 billion

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Definitions:

Alfred Kinsey

An American biologist and sexologist who is known for his research on human sexuality in the mid-20th century, notably the Kinsey Reports.

Conservative Groups

Organizations or factions holding traditional values and beliefs, often promoting the preservation of established institutions and resistance to rapid change.

Masturbation

is the self-stimulation of the genitals to achieve sexual pleasure.

Alfred C. Kinsey

A biologist and sexologist from the United States who established the Institute for Sex Research at Indiana University, famed for his contributions to the study of human sexuality.