If Net Exports Fall $40 Billion and the MPC Is

question 295

Multiple Choice

If net exports fall $40 billion and the MPC is 8/11 and there is a multiplier effect, but no crowding out and no investment accelerator, then

• A)aggregate demand falls by 3 x $40 billion.
• B)aggregate demand falls by 11/3 x $40 billion.
• C)aggregate demand falls by 11/8 x $40 billion.
• D)None of the above is correct.

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Definitions:

Conditional Positive Regard

Acceptance and love that are contingent upon a person's behaving in certain ways or meeting certain conditions.

Self-Actualization

According to Abraham Maslow and some other adherents of the humanistic approach to personality, the full realization of one’s potential.

Self-Esteem

An individual's subjective evaluation of their own worth, encompassing beliefs and emotions about oneself.

Objective Self-Appraisal

The evaluation of oneself through an unbiased, factual understanding of one's skills, qualities, and abilities.