Assume That the MPC Is 0

question 115

Multiple Choice

Assume that the MPC is 0.75. Assuming only the multiplier effect matters, how will an increase in government purchases of $200 billion shift the aggregate demand curve?

• A) It will shift the aggregate demand curve left by $80 billion.
• B) It will shift the aggregate demand curve left by $250 billion.
• C) It will shift the aggregate demand curve right by $750 billion.
• D) It will shift the aggregate demand curve right by $800 billion.

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Definitions:

Client/Server Network

A network architecture where clients request resources or services, and servers provide them, enabling centralized resource management.

Client

A computer or software application that accesses services or resources from a server in a networked environment.

DoS Attack

Short for Denial of Service attack, it is a malicious attempt to disrupt the normal functioning of a targeted server, service, or network by overwhelming it with a flood of Internet traffic.

Company Server

A powerful computer or device on a network that manages network resources and stores data central to the operations of a business.