Suppose Aggregate Output Is Demand-Determined

question 50

Multiple Choice

Suppose aggregate output is demand-determined.Suppose a decrease in autonomous investment expenditure of $20 million reduces equilibrium national income by $50 million.The simple multiplier is equal to

• A)-2.5.
• B)-0.6.
• C)0.4.
• D)0.6.
• E)2.5.

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Definitions:

Nature-nurture Controversy

The ongoing debate over the relative contributions of genetics and environment to human behavior and traits.

Sir Francis Galton

A British polymath best known for his work in the fields of statistics, psychology, and eugenics, and for being a pioneer in the study of human intelligence and variation.

Alfred Binet

A French psychologist best known for his role in developing the first intelligence tests along with his colleague Théodore Simon.

Heredity

The passing of genetic traits from parents to offspring, determining certain characteristics of the individual.