(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.

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Definitions:

Twa Pygmy

An indigenous people of central Africa, known for their short stature and traditionally hunter-gatherer lifestyle.

Ota Benga

A man from the Mbuti people of the Congo who was brought to the United States in the early 20th century and displayed in an exhibition, highlighting the dark aspects of human zoos and racial science practices of the time.

Polynesian Boy

Refers to a male youth from the Polynesian cultural region, which spans a vast area of the Pacific Ocean and includes numerous islands.

Dehumanization

The process of depriving a person or group of positive human qualities, making them seem less than human and not deserving of moral consideration or empathy.