In a Simple, Private Economy, Suppose That the MPC Is

question 5

Multiple Choice

In a simple, private economy, suppose that the MPC is .8 and investment rises by $20 million.At the new equilibrium, how much will saving have increased?

• A)$8 million 
• B)$16 million 
• C)$20 million 
• D)$80 million 
• E)$100 million

---

Definitions:

Descartes's Dualism

A philosophical stance proposed by René Descartes that separates the mind and the body as two fundamentally different substances that interact with each other.

Biological Activity

Refers to the effects of a substance on living organisms, including any biochemical interactions.

Nature/nurture Debate

Debate concerning the relative importance of an individual's innate qualities versus personal experiences in determining or causing differences in physical and behavioral traits.

Biological Factors

Aspects of biology that affect behaviors, health, and development, including genetics, brain chemistry, and physical health.