If Households Save $30 Billion More at Each Level of Income

question 54

Multiple Choice

If households save $30 billion more at each level of income and the MPC = 0.9,the aggregate expenditure line will

• A)not be affected
• B)shift upward by $30 billion
• C)shift downward by $30 billion
• D)shift upward by $300 billion because of the multiplier
• E)shift downward by $300 billion because of the multiplier

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Definitions:

Stress Interfere

Refers to how stress negatively impacts or disrupts daily functioning and well-being.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, including heart rate, digestion, and breathing.

Fear of Heights

Also known as acrophobia, it is an anxiety disorder characterized by an extreme fear of high places.

Sympathetic Nervous System

Part of the autonomic nervous system that controls the body's responses to perceived threats, activating the fight or flight response.