The Table Given Below Shows the Levels of National Income

question 6

Multiple Choice

The table given below shows the levels of national income (Y) and the corresponding levels of saving (S) , investment (I) , export (X) , and import (M) of an open economy. Table 10.2
Consider the economy described in Table 10.2.If autonomous saving decreases by $200, what will happen at the current equilibrium level of income?

• A)Autonomous consumption spending will also decrease by $200, and so no change in equilibrium income occurs.
• B)Total leakages in the economy will exceed total injections.
• C)There will be pressure on real GDP to rise.
• D)There will be pressure on the economy to contract.
• E)Unplanned inventories in the economy will grow.

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Definitions:

Genetic Basis

the underlying genetic makeup that contributes to the physical and physiological traits or the likelihood of developing certain conditions.

Heredity

The transmission of characteristics from parents to their children via genetic material.

Measures of Intelligence

Measures of Intelligence refer to the various tests and assessments used to quantitatively evaluate an individual's intellectual abilities and potential.

Stereotype Vulnerability

The risk of conforming to stereotypes about one's social group, which can affect performance and behavior.