If Net Exports Increase by 250 and the Mpc Is

question 76

Multiple Choice

If net exports increase by 250 and the mpc is 0.75,equilibrium aggregate output increases by

• A)250.
• B)500.
• C)750.
• D)1,000.

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Definitions:

Cash Dividend

A distribution of a portion of a company's earnings, typically in cash, to its stockholders as a share of the profits.

Long-term Investments

Assets purchased by a company that are intended to be held for more than one year, typically including stocks, bonds, or real estate.

Bonds Payable

Long-term liabilities represented by bonds that a company must repay at a future date, often including periodic interest payments.

Cash Dividend

A distribution of profits by a company to its shareholders, typically given as cash.