Suppose That Planned Investment Increases by $200 Billion and That

question 71

Multiple Choice

Suppose that planned investment increases by $200 billion and that the marginal propensity to consume equals 0.80.The aggregate expenditure line will shift upward by __________ at every level of real GDP.

• A)$40 billion
• B)$160 billion
• C)$200 billion
• D)$250 billion
• E)$1,000 billion

---

Definitions:

Product Attributes

The characteristics, features, and properties that define a product and distinguish it from others in the market.

Rebranding

A marketing strategy in which a new name, term, symbol, design, or combination thereof is developed for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors, and competitors.

Boxed Brownie Mix

A prepackaged set of dry ingredients for making brownies, requiring only the addition of a few wet ingredients.

Rebranding

A marketing strategy in which a new name, term, symbol, design, or a combination thereof is created for an already established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors, and competitors.