If the MPC Is

question 45

Multiple Choice

If the MPC is .70 and gross investment increases by $3 billion, the equilibrium GDP will:

• A)increase by about $10 billion.
• B)increase by $2.10 billion.
• C)decrease by $4.29 billion.
• D)increase by $4.29 billion.

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Definitions:

Allergy

A hypersensitive reaction of the immune system to specific substances, known as allergens, which are harmless to most people.

Nasal Discharge

A common symptom involving fluid that flows from the nose, often due to allergies, colds, or infections.

Common Cold

A viral infection of the upper respiratory tract that is characterized by symptoms such as sneezing, sore throat, coughing, and a runny nose.

Influenza

A viral infection that attacks the respiratory system, commonly known as the flu, which can be serious or even fatal in vulnerable populations.