When Investment Remains the Same at Each Level of GDP

question 25

Multiple Choice

When investment remains the same at each level of GDP in a private closed economy, the slope of the aggregate expenditures schedule

• A) exceeds the MPC.
• B) is less than the MPC.
• C) equals the MPS.
• D) equals the MPC.

---

Definitions:

Decision Making

The process of selecting a course of action from multiple alternatives to achieve a desired outcome.

Preferred Course

Typically refers to a course or subject that an individual chooses to study, based on interest, goals, or requirements for a career or academic path.

Implementing Solution

The process of putting into action or executing a plan or solution to address a specific problem or challenge.

Behavioural Decision Model

Describes decision‐making with limited information and bounded rationality.