FIGURE 21-3 -Refer to Figure 21-3.A Shift in the Aggregate Expenditure Function

question 103

Multiple Choice

FIGURE 21-3
-Refer to Figure 21-3.A shift in the aggregate expenditure function from AE₀ to AE₁ could be caused by

• A)a rise in the multiplier.
• B)a fall in the marginal propensity to consume.
• C)a rise in the marginal propensity to consume.
• D)an increase in desired investment expenditures.
• E)a decrease in desired investment expenditures.

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Definitions:

Slippery Slope

A logical fallacy that suggests a minor action will lead to major and oftentimes negative consequences without providing evidence for such a drastic outcome.

Kant

A German philosopher in the 18th century known for critical philosophy, especially his Critique of Pure Reason.

Teleological Theory

An ethical theory that holds the consequences of an action as the basis for any judgment about the morality of that action.

Employee Loses

"Employee Loses" could refer to situations where an employee is not successful in a legal battle, competition for promotions, or experiences loss of employment; however, without more context, its specific meaning can vary.