Suppose That Technological Advancements Stimulate $20 Billion in Additional Investment

question 78

Multiple Choice

Suppose that technological advancements stimulate $20 billion in additional investment spending.If the MPC = .6,how much will the change in investment increase aggregate demand?

• A) $12 billion.
• B) $20 billion.
• C) $33.3 billion.
• D) $50 billion.

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Definitions:

Fiske's

Refers to social psychologist Susan Fiske's work, which includes theories on social cognition and stereotypes.

Vertical Collectivism

A cultural value that emphasizes the importance of the community or group over the individual, with a strong hierarchy and loyalty to the group.

Authority Ranking

A system of organizing social relationships based on hierarchies of power and authority, where individuals' decisions or status are influenced by their position within the hierarchy.

Equality Matching

A principle of social justice where individuals aim to ensure fairness and equality by treating each person the same, often by sharing resources equally.