In the Basic Keynesian Model Where the Marginal Propensity to Consume

question 83

Multiple Choice

In the basic Keynesian model where the marginal propensity to consume is 0.5,transfer payments must be _______,to close a recessionary gap resulting from a $1 billion decrease in autonomous consumption.

• A) increased by $1 billion
• B) decreased by $1 billion
• C) increased by $2 billion
• D) decreased by $2 billion
• E) increased by $0.5 billion

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Definitions:

Stage 4

In various developmental theories, Stage 4 can refer to distinct phases characterized by specific challenges, growth opportunities, and milestones, depending on the context of the theory being discussed.

REM Sleep

A stage of sleep characterized by Rapid Eye Movements, during which most dreaming occurs and brain activity is akin to being awake.

Strenuous Physical

Strenuous physical activities involve intense or vigorous effort that requires considerable energy and endurance.

Short Naps

Brief periods of sleep, generally lasting less than 30 minutes, intended to quickly restore alertness and performance.