In a Certain Economy,when Income Is $1000,consumer Spending Is $800

question 30

Multiple Choice

In a certain economy,when income is $1000,consumer spending is $800.The value of the multiplier for this economy is 2.5.It follows that,when income is $1020,consumer spending is

• A)$816.For this economy,an initial increase of $100 in consumer spending translates into a $250 increase in aggregate demand.
• B)$816.For this economy,an initial increase of $100 in consumer spending translates into a $400 increase in aggregate demand.
• C)$812.For this economy,an initial increase of $100 in consumer spending translates into a $250 increase in aggregate demand.
• D)$812.For this economy,an initial increase of $100 in consumer spending translates into an $800 increase in aggregate demand.

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Definitions:

Ethical Decisions

Choices made based on moral principles and values, considering the impact on all stakeholders involved and aiming for fairness and integrity.

Compassionate Choice

A principle or action taken based on understanding and empathy towards the needs and suffering of others.

Ethics

The moral principles that govern a person's behavior or the conducting of an activity, often underpinning professional standards and practices.

Utilitarianism

An ethical theory that posits the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.