The Table Shows a Private, Open Economy

question 19

Multiple Choice

The table shows a private, open economy.All figures are in billions of dollars. Refer to the above table.If the marginal propensity to consume in this economy is 0.8, a $10 increase in its net exports would increase its equilibrium real GDP by:

• A)$25
• B)$50
• C)$100
• D)$200

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Definitions:

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A pervasive sense of being less valuable or worthy than others, which can drive motivation to achieve or lead to psychological withdrawal.

Alfred Adler

An Austrian medical doctor, psychotherapist, and founder of the school of individual psychology, known for his theories on personality, inferiority complex, and birth order.

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An item of formal attire or costume, usually extending up to the elbows or higher, often associated with elegance, fashion, and ceremonial events.

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A type of market research that examines the underlying emotional and psychological reasons behind consumer behavior.