A Decrease in the Marginal Propensity to Spend Out of National

question 3

Multiple Choice

A decrease in the marginal propensity to spend out of national income will cause

• A)a movement to the right along the AE curve.
• B)a movement to the left along the AE curve.
• C)an increase in the slope of the AE curve,which rotates it upward.
• D)a decrease in the slope of the AE curve,which rotates it downward.
• E)a parallel downward shift in the AE curve.

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Definitions:

Patent Amortization

The process of gradually writing off the initial cost of a patent over its useful life, reflecting its consumption or expiration.

Indirect Method

The indirect method is an approach used in cash flow statements to adjust net income for changes in non-cash accounts to calculate net cash provided by operating activities.

Indirect Method

A way of presenting a cash flow statement where net income is adjusted for changes in balance sheet items to reflect cash transactions.

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear, age, or obsolescence.