Suppose That the Slope of the AE Curve Is 0

question 343

Multiple Choice

Suppose that the slope of the AE curve is 0.75. Then a $100 decrease in autonomous spending means equilibrium expenditure will

• A) decrease by $400.
• B) increase by $400.
• C) decrease by $750.
• D) increase by $750.

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Definitions:

Short-Term Memory

A component of human memory system that is capable of holding a small amount of information in mind in an active, readily available state for a short period of time.

Encoding Specificity

The principle that recall is most effective when the cues present at the time of learning are also present at the time of retrieval.

Recall

The act of retrieving information or memories from one's past, often without external cues.

Recognition

The retrieval of information in which the processor must decide whether the information presented has been previously presented. See also recall.