Fact Pattern 3-B2

question 4

Multiple Choice

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
-Harry, a resident of Indiana, has an accident with Jane, a resident of Kentucky, while driving through that state. Jane files a suit against Harry in Kentucky. Regarding Harry, Kentucky has

• A) diversity jurisdiction.
• B) in personam jurisdiction.
• C) in rem jurisdiction.
• D) no jurisdiction.

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Definitions:

APC

Average Propensity to Consume, which is the fraction of income that households spend on consumption as opposed to saving.

APS

Stands for Average Propensity to Save, which measures the proportion of income that households save rather than spend on goods and services.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the consuming behavior independent of current income.

Aggregate Household

The combined and total measure of all consumers in an economy, accounting for all spending and consumption.