Assuming MPC = 0.5, a $2,000 decrease in intended investment will shift the aggregate expenditure curve down by
a. $2,000 and will decrease the equilibrium level of national income by $2,000
b. $2,000 and will decrease the equilibrium level of national income by less than $2,000
c. $2,000 and will decrease the equilibrium level of national income by more than $2,000
d. more than $2,000 and will decrease the equilibrium level of national income by more than $2,000
e. less than $2,000 and will decrease the equilibrium level of national income by less than $2,000
C
You might also like to view...
Consider the market for smart phones. Which of the following shifts the demand curve rightward?
A) a decrease in the price of smart phones B) an increase in the price of smart phones C) an increase in the price of land-line phone service, a substitute for smart phones D) an increase in the supply of smart phones E) a decrease in the number of smart phone buyers
When the Pilgrims first arrived in North America, they established communal ownership of all pastures and of all agricultural production. As is common with communal ownership, this communal ownership by the Pilgrims resulted in
A) underproduction and underconsumption. B) underproduction and overconsumption. C) overproduction and underconsumption. D) overproduction and overconsumption.
A worker who has invested in ________ skills will be ________ mobile than would otherwise be the case
A) occupation-specific; less B) occupation-specific; more C) ethical; less D) ethical; more E) occupation-nominal; less
Other things the same, if participants in foreign exchange markets come to expect an increase in the value of the U.S. dollar ________
A) the actual value of the U.S. dollar will not be affected B) the actual value of the U.S. dollar will fall C) the actual value of the U.S. dollar will rise D) one cannot predict the movement of the U.S. dollar in the future