Suppose Real GDP Increases from $9 Trillion to $10 Trillion

question 328

Multiple Choice

Suppose real GDP increases from $9 trillion to $10 trillion. As a result, consumption expenditure increases from $9 trillion to $9.75 trillion. This result implies the MPS equals

• A) 0.25.
• B) 0.75.
• C) 0.
• D) some amount that cannot be determined without more information.

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Definitions:

Possession

The state or fact of owning or holding something in one’s control, typically physical objects, but can also refer to rights.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, aimed at harmonizing the law of sales and other commercial transactions.

Common Law

A legal system characterized by judicial decisions based on customs and prior judicial judgments, rather than by written statutes or codes.

Risk Of Loss

Refers to the legal responsibility for damages or losses of goods, especially in transactions or during shipment, indicating who bears the financial burden.