Government Purchases Rise by $100 Billion and the MPC Is

question 11

Multiple Choice

Government purchases rise by $100 billion and the MPC is equal 0.75.Assuming that idle resources exist at each expenditure round,and the multiplier is operative,the change in Real GDP equals

• A) $40 billion.
• B) $75 billion.
• C) $400 billion.
• D) $750 billion.
• E) $250 billion.

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Definitions:

Dividing Cells

Cells undergoing the process of division, which can lead to growth or reproduction of the organism.

Maturation

The process of becoming mature, involving growth and development in biological, emotional, or intellectual aspects.

Elongation

The phase in DNA replication and transcription, or in protein synthesis, where the DNA, RNA, or polypeptide chain is lengthened.

Cell Division

The process by which a parent cell divides into two or more daughter cells, essential for growth, reproduction, and repair in living organisms.