If the MPC Is 0

question 80

Multiple Choice

If the MPC is 0.8 and government increases spending by $50 million, what will be the demand for goods and services generated by this increase?

• A) $10 million
• B) $40 million
• C) $62.5 million
• D) $250 million

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Definitions:

Liability

A legal obligation or responsibility for any debt or damages.

Securities Exchange Act of 1934

A U.S. federal law that regulates the trading of securities, such as stocks and bonds, after the initial sale.

Good Faith Negligence Standard

A legal principle requiring individuals to act with honesty and without intent to defraud in situations where negligence is alleged.

Lead Audit Partner

The senior partner responsible for overseeing the audit process, ensuring compliance, and signing the audit report.