A $1 Billion Increase in Investment Will Cause A

question 42

Multiple Choice

A $1 billion increase in investment will cause a:

• A)(1/MPS) billion increase in equilibrium GDP.
• B)(MPS) billion increase in equilibrium GDP.
• C)(1 - MPC) billion increase in equilibrium GDP.
• D)(MPC - MPS) billion increase in equilibrium GDP.

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Definitions:

Outcome Simulation

The process of mentally visualizing the outcomes of specific behaviors or decisions as a way to anticipate and plan for future events.

Gestured Communication

The use of bodily movements, especially of the hands and arms, to express thoughts, emotions, or information without verbal speech.

Human Language

Human Language is a complex system of communication that involves the use of spoken, written, or gestural symbols to convey meaning, emotions, and thoughts.

Perceptual Set

A mental predisposition to perceive one thing and not another.