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The Shift in the PAE Line Shown in the Keynesian

question 175

Multiple Choice

The shift in the PAE line shown in the Keynesian cross diagram may be caused by which of the following? The shift in the PAE line shown in the Keynesian cross diagram may be caused by which of the following?   A)  An increase in government purchases. B)  An increase in the marginal propensity to consume. C)  A decrease in government transfers. D)  A decrease in private-sector investment. E)  A decrease in the marginal propensity to consumE.


Definitions:

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue; it is calculated by dividing sales revenue by total assets.

Return on Assets

A financial ratio indicating how profitable a company is relative to its total assets, measuring how efficiently a company uses its assets to generate earnings.

Inventory Turnover

Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Acid Test

A rigorous and conclusive test to prove the effectiveness or value of something.

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