In a Simple Macro Model with the Price Level Assumed

question 97

Multiple Choice

In a simple macro model with the price level assumed to be constant,a change in firms' level of desired investment is predicted to influence equilibrium national income by

• A)shifting the saving function.
• B)shifting the consumption function.
• C)shifting the aggregate expenditure function.
• D)causing movement along the investment function.
• E)shifting the 45-degree line.

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Definitions:

Beliefs

Convictions or acceptance that something exists or is true, especially without proof.

Impression Formation

The process by which individuals form an overall view about another person based on available sensory and cognitive information.

Attribution

The method individuals use to assign reasons to actions and occurrences, crediting them either to inherent personality traits or to circumstances in the external environment.

Impressions

The initial thoughts or feelings about someone or something based on observed attributes or actions.