Assume That Autonomous Expenditures in an Economy Decreased by $10

question 45

Multiple Choice

Assume that autonomous expenditures in an economy decreased by $10 billion. What is the change in aggregate demand at a given price level if the MPC is 0.5?

• A)​increase by $50 billion
• B)​increase by $10 billion
• C)​decrease by $20 billion
• D)​decrease by $10 billion

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Definitions:

Oral Contraceptives

Medications taken by mouth to prevent pregnancy, often containing hormones to regulate or stop ovulation.

Chemical State

The composition and properties of substances in terms of atoms and molecules, affecting how they interact and react with each other.

Male Condom

A sheath-shaped barrier device used during sexual intercourse to reduce the probability of pregnancy and the spread of sexually transmitted infections.

Anal Sex

A sexual activity involving insertion of the penis into the anus of a partner.