(Advanced Analysis)Assume That the MPS Is

question 8

Multiple Choice

(Advanced analysis) Assume that the MPS is .33 in an economy that has an aggregate supply curve with a slope of 1.An increase in investment spending of $10 billion will shift the aggregate demand curve rightward by:

• A) $30 billion and increase real GDP by $15 billion.
• B) $30 billion and increase real GDP by $30 billion.
• C) $10 billion and increase real GDP by $30 billion.
• D) $10 billion and increase real GDP by $10 billion.

---

Definitions:

Appearance

The way in which something is visually perceived or how someone looks, including aspects like clothing, grooming, and physical features.

Functioning

The way in which something operates or works; can refer to individuals, systems, or machinery.

Phobic Disorders

Psychological disorders characterized by an intense, irrational fear of specific objects, situations, or activities that pose little to no actual danger.

Extreme Anxiety

A heightened state of fear, worry, or nervousness that is significantly more intense than the typical responses to stress.