An Increase in Autonomous Investment Will

question 132

Multiple Choice

An increase in autonomous investment will

• A)shift the aggregate expenditure line upward
• B)shift the aggregate expenditure line downward
• C)result in an upward movement along the aggregate expenditure line
• D)result in a downward movement along the aggregate expenditure line
• E)increase aggregate expenditures only at high levels of income

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Definitions:

Cohesive

The degree to which members of a group are attracted to, and motivated to remain part of, that group, often leading to increased solidarity and group effectiveness.

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Shared Information Bias

A tendency in group decision-making processes to disproportionately discuss information that all members are already familiar with, rather than considering new or unknown information.

Cross-cueing

A mechanism where the presence of one stimulus or cue enhances the recognition or recall of another related cue.