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:

Fight-or-Flight Reaction

A physiological response to perceived harmful events, attacks, or threats to survival, characterized by an increase in heart rate, blood pressure, and energy supplies.

Heart Rate

The number of heartbeats per unit of time, typically expressed as beats per minute (bpm), indicating cardiovascular activity and overall health.

Respiration Rate

The number of breaths an individual takes per minute, a vital sign indicating the rate of breathing and an important measure of respiratory function.

Human Prehistory

The period of human activity between the use of the first stone tools 3.3 million years ago and the invention of writing systems.