Which of the Following Events Would Cause the AE Function

question 6

Multiple Choice

Which of the following events would cause the AE function to shift upwards in a parallel way?

• A)an increase in the MPC
• B)a decrease in the net tax rate
• C)a decrease in the business confidence of firms
• D)a decrease in foreign income
• E)a decrease in the aggregate price level

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Definitions:

GABA

Gamma-Aminobutyric Acid, a neurotransmitter in the brain that inhibits nerve transmission, reducing neuronal excitability throughout the nervous system.

Agonist

A chemical or drug that binds to receptors in the brain and causes a reaction, often mimicking the action of naturally occurring substances.

Reuptake

The absorption by a presynaptic nerve ending of a neurotransmitter that it has secreted, critical in regulating neurotransmitter levels and influencing neural communication.

Performance Anxiety

Anxiety over sexual performance that interferes with sexual functioning.