Scenario 34-1

question 119

Multiple Choice

Scenario 34-1. Take the following information as given for a small economy:
• When income is $10,000, consumption spending is $6,500.
• When income is $11,000, consumption spending is $7,250.
-Refer to Scenario 34-1. For this economy, an initial increase of $200 in net exports translates into a(n)

• A)$570 increase in aggregate demand when the crowding-out effect is taken into account.
• B)$800 increase in aggregate demand when the crowding-out effect is taken into account.
• C)$1,400 increase in aggregate demand in the absence of the crowding-out effect.
• D)$800 increase in aggregate demand in the absence of the crowding-out effect.

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Definitions:

Nurse Midwife

A healthcare professional specializing in pregnancy, childbirth, and postpartum period, offering both nursing and midwifery care.

Deliveries

The process of transporting goods from one place to another, as well as the handover of those goods to their intended recipient.

Legal Age

The age at which an individual is considered legally competent to consent to certain activities, such as voting, drinking alcohol, and entering into contracts.

Good Moral Character

A set of qualities that includes honesty, integrity, and ethics, often evaluated in legal or professional contexts.