In the Basic Keynesian Model Where the Marginal Propensity to Consume

question 147

Multiple Choice

In the basic Keynesian model where the marginal propensity to consume is 0.5,transfer payments must be ________,to close an expansionary gap resulting from a $1 billion increase 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

Describe the impact of emotional and physiological arousal on behavior and performance.

Understand the physiological mechanisms involved in arousal and sleep.

Identify the effects of stress on the body and its mechanisms.

Describe the role of neurotransmitters in promoting arousal and sleep.

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