If the MPC Is 0

question 54

Multiple Choice

If the MPC is 0.75, a $20 billion decrease in planned investment will cause aggregate output to decrease by:

• A) $26.67 billion
• B) $80 billion
• C) $15 billion
• D) $20 billion

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Definitions:

Ambivalent Attachment

A type of insecure attachment where an individual simultaneously desires closeness with their caregiver but also resists it out of fear of rejection.

Percent

A measure expressed as a fraction of 100, representing a part of a total.

Avoidant Attachment

A type of attachment style characterized by difficulty in trusting others, emotional distance, and reluctance to depend on others for emotional support.

Anxious Attachment

A type of attachment characterized by insecurity and worry about relationships, often stemming from inconsistent caregiving experiences in childhood.