Given an MPC of 0

question 310

Multiple Choice

Given an MPC of 0.80, if there are no income taxes or imports and prices are constant, then when investment increases by $50 million, when prices are fixed equilibrium GDP would

• A) increase by $400 million.
• B) increase by $50 million.
• C) increase by $250 million.
• D) To answer the question more information on income is needed.

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Definitions:

Internal Locus Of Control

The belief that one has control over their own life and the outcomes of their actions, as opposed to external forces having that control.

Individuals

Separate and distinct persons as considered in their singular form, each with their own characteristics, responsibilities, and roles within a society or organization.

Self-efficacy

An individual's belief in their own ability to succeed in specific situations or accomplish a task.

High Self-efficacy

A person's belief in their own ability to succeed in specific situations or accomplish a task.