An Increase in Autonomous Consumption ________

question 39

Multiple Choice

An increase in autonomous consumption ________.

• A)lowers planned expenditures
• B)raises equilibrium output for any level of the interest rate
• C)causes a movement down along the IS curve
• D)all of the above
• E)none of the above

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Definitions:

Trapped Gas

Trapped gas refers to gas that has been contained within another material, such as within rock formations or ice, which can be released under certain conditions.

Andesite

An intermediate-composition igneous rock that is the fine-grained equivalent of diorite; typically gray or greenish-gray, commonly with phenocrysts of cream-colored feldspar or dark amphibole.

Magma Chamber

A reservoir of molten rock beneath the surface of the Earth or a volcano.

Felsic Igneous Rock

Igneous rocks that are rich in silica and light in color, such as granite, characterized by minerals like quartz and feldspar.