21.2 Equilibrium National Income FIGURE 21-3

question 155

Multiple Choice

21.2 Equilibrium National Income FIGURE 21-3
-Refer to Figure 21-3.Consider the simplest macro model with no government and no foreign trade,and the aggregate expenditure function AE = C + I.If there was zero autonomous expenditure and the marginal propensity to consume was equal to one,then the AE function would be

• A)steeper than the 45-degree line.
• B)above the 45-degree line at all points.
• C)below the 45-degree line at all points.
• D)coincident with the 45-degree line.
• E)flatter than the 45-degree line.

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Definitions:

Teratogens

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Developing Fetus

Refers to a prenatal human between the embryonic state and birth, during which significant growth and development occur.

Fetal Alcohol Syndrome

Fetal Alcohol Syndrome is a condition resulting from alcohol exposure during the mother's pregnancy, causing physical and developmental anomalies in the child.

Cognitive Abnormalities

Atypical patterns in thought processes, often manifesting as difficulties in perception, memory, logic, and attention.