Suppose That the Level of GDP Increased by $100 Billion

question 128

Multiple Choice

Suppose that the level of GDP increased by $100 billion in an economy where the marginal propensity to consume is 0.5.The initial change in spending must have been:

• A)$100 billion.
• B)$50 billion.
• C)$500 billion.
• D)$5 billion.

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Definitions:

Separate Schools

Educational institutions segregated by certain criteria, such as gender, religion, or ethnicity, often leading to debates about equality and accessibility in education.

Student Nonviolent Coordinating Committee

A civil rights organization founded in 1960 that played a major role in the civil rights movement, advocating for justice and equality through nonviolent protest.

Freedom Summer

A volunteer campaign in the United States during the summer of 1964 aiming to register as many African-American voters as possible in Mississippi, known for its resistance to civil rights.

Mississippi

A U.S. state located in the southeastern region of the country, known for its history, cultural heritage, and significant role in the American Civil Rights Movement.