Suppose There Is an Increase in the Marginal Propensity to Spend

question 34

Multiple Choice

Suppose there is an increase in the marginal propensity to spend out of national income.The result will be

• 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.
• D)a decrease in the slope of the AE curve.
• E)a parallel upward shift in the AE curve.

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Definitions:

Groups are Equivalent

This term refers to the condition in experimental research designs where different groups are matched on key characteristics or variables to ensure comparability and control for confounding variables.

Social Desirability

The tendency of respondents to answer questions in a manner that will be viewed favorably by others, which can bias survey and research outcomes.

Cognitive Dissonance

A psychological phenomenon where there is a feeling of uncomfortable tension which comes from holding two conflicting thoughts in the mind at the same time.

Carryover Effect

A phenomenon where the effect of a previous condition persists and influences performance in subsequent conditions in a study.