Calculate the Total Change in Spending Because of an Initial

question 68

Multiple Choice

Calculate the total change in spending because of an initial $100 increase in aggregate demand,given that the MPC = 0.60.

• A)$100 increase.
• B)$100 decrease.
• C)$250 increase.
• D)$60 increase.

---

Definitions:

Retina

The thin lining at the back of the eye that contains light-sensitive cells which convert light into neural signals for visual recognition by the brain.

Window Pane

A pane of glass used to fill openings in a building and allow light into rooms while providing a barrier from the environment; often a metaphor for clarity of thought or vision.

Color

The aspect of visual perception by which an observer is able to distinguish otherwise identical objects based on the wavelength of the light they reflect, emit, or transmit.

Iris

The hue-bearing region of the eye that adjusts how wide the pupil is and governs the quantity of light entering.