An Increase in Planned Investment Causes

question 83

Multiple Choice

An increase in planned investment causes

• A) output to increase.
• B) output to decrease, but by a smaller amount than the decrease in investment.
• C) output to decrease, but by a larger amount than the decrease in investment.
• D) output to decrease by an amount equal to the decrease in investment.

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Definitions:

Pretzels

A type of baked pastry made from dough that is commonly shaped into a knot and typically salted.

Utils

A hypothetical unit of measurement used in economics to quantify the level of utility or satisfaction gained from consuming goods and services.

Sensitivity

The degree to which something is affected by changes in external factors, often used in contexts like financial analyses, project planning, or scientific measurements.

Marginal Utility

This concept describes the additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.