If the MPC Is 0

question 111

Multiple Choice

If the MPC is 0.75 and there are no crowding-out or accelerator effects, an initial increase in AD of $100 billion will eventually shift the AD curve to the right by how much?

• A) $40 billion
• B) $133.33 billion
• C) $250 billion
• D) $400 billion

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Definitions:

Acquittal

The legal act of declaring someone not guilty of the charges against them in a court of law.

Congressional Reconstruction

The period after the Civil War during which the U.S. Congress implemented and enforced laws aiming to rebuild and reform the Southern states while securing civil rights for freed slaves.

Evolution

A scientific theory that explains the diversity of life on Earth through processes such as natural selection and genetic variation.

Development

The process of economic and social transformation that is based on complex cultural and environmental factors and their interactions.