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:

Price Of Peaches

The amount of money required to purchase a specific quantity of peaches in the market.

Price Of Pineapples

The amount of money required to purchase a single unit or specified amount of pineapples.

Money Budget

An estimation of the revenue and expenses over a specified future period of time, specifically focusing on cash flows and monetary resources.

Calorie Limit

A nutritional guideline specifying the maximum number of calories to be consumed in a day to maintain or achieve certain health goals.