Suppose Real GDP Increases from $13 Trillion to $14 Trillion

question 53

Multiple Choice

Suppose real GDP increases from $13 trillion to $14 trillion. As a result, consumption expenditure increases from $13 trillion to $13.75 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:

Gardner

A reference to Howard Gardner, an American developmental psychologist known for his theory of multiple intelligences.

Leadership Grid

A model for understanding leadership styles based on concern for people and production.

Concern For Production

Focuses on the emphasis a manager or organization places on the output and productivity levels of its operations.

Readiness

The state of being fully prepared for something or willing to do something; readiness may refer to individuals, organizations, or systems.