In the Keynesian Model, an Increase in Real Autonomous Spending

question 303

Multiple Choice

In the Keynesian model, an increase in real autonomous spending results in a greater increase in real Gross Domestic Product (GDP) if

• A) the marginal propensity to consume (MPC) is lower.
• B) the marginal propensity to consume (MPC) is higher.
• C) the average propensity to save (APS) is higher.
• D) the average propensity to save (APS) is lower.

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Definitions:

Ambiguous Faces

Visual stimuli that can be interpreted in more than one way and are often used in psychological experiments to study perception and emotion.

Outgroup Homogeneity

The perception that members of an outgroup are more similar to each other than they actually are, as compared to the ingroup's diversity.

Unjustifiable Negative Behavior

This refers to actions or behaviors that have a negative impact on others or oneself and cannot be logically or morally defended.

Prejudice

Preconceived opinion that is not based on reason or actual experience, often directed towards people or groups.