Scenario 34-1

question 153

Multiple Choice

Scenario 34-1.Take the following information as given for a small,imaginary economy:
• When income is $10,000,consumption spending is $6,500.
• When income is $11,000,consumption spending is $7,300.
-Refer to Scenario 34-1.For this economy,an initial increase of $500 in net exports translates into a

• A) $2,000 increase in aggregate demand when the crowding-out effect is taken into account.
• B) $2,500 increase in aggregate demand when the crowding-out effect is taken into account.
• C) $2,000 increase in aggregate demand in the absence of the crowding-out effect.
• D) $2,500 increase in aggregate demand in the absence of the crowding-out effect.

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Definitions:

HEXACO Model

A personality framework that consists of six dimensions: Honesty-Humility, Emotionality, eXtraversion, Agreeableness, Conscientiousness, and Openness to Experience, used to describe human personality traits.

Big Five Model

A psychological theory identifying five main personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Honesty-Humility

A personality dimension reflecting levels of fairness, sincerity, and avoidance of manipulation towards others.

Self-Esteem

A person's overall subjective sense of personal worth or value.