To Eliminate an AD Shortfall of $100 Billion When the Economy

question 12

Multiple Choice

To eliminate an AD shortfall of $100 billion when the economy has an MPC of 0.80,the government should increase transfer payments by

• A)$25 billion.
• B)$100 billion.
• C)$80 billion.
• D)$20 billion.

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Definitions:

Facilitated Diffusion

Passive transport mechanism in which a solute follows its concentration gradient across a membrane by moving through a transport protein.

Concentration Gradient

A variation in the concentration of a substance across a distance.

Glucose Transporter

Proteins located in cell membranes that assist in the transport of glucose molecules into and out of cells, facilitating the use of glucose for energy.

Facilitated Diffusion

A process of passive transport, with no energy consumption, where molecules move across a cellular membrane via protein channels.