A Permanent Increase in Autonomous Investment Causes

question 246

Multiple Choice

A permanent increase in autonomous investment causes

• A) a more than proportional increase in real Gross Domestic Product (GDP).
• B) a proportional increase in real Gross Domestic Product (GDP).
• C) a less than proportional increase in real Gross Domestic Product (GDP).
• D) an offsetting change in saving that leaves real Gross Domestic Product (GDP) at the same level.

---

Definitions:

Budget Line

The budget line represents the combination of goods and services that a consumer can purchase with a given budget, considering the prices of those goods and services.

Sociology

The scientific study of society, including patterns of social relationships, social interaction, and culture.

Economics

A branch of social science that investigates the decision-making processes of individuals, governments, companies, and countries when distributing limited resources to fulfill their endless desires.

Weekend

The period from Friday evening through Sunday evening, specifically considered a time for leisure and rest from the workweek.