In a Keynesian Model, If MPM = 0

question 26

Multiple Choice

In a Keynesian model, if MPM = 0.2, MPC = 0.8, and there is no government sector, what will be the ultimate effect of an autonomous increase in investment of 30 on the imports of the country, other things equal?

• A) increase by 6
• B) increase by 15
• C) increase by 75
• D) decrease by 30

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Definitions:

Management Function

The roles and activities undertaken by managers to achieve organizational objectives, including planning, organizing, leading, and controlling.

Planning Process

The structured approach that outlines how goals are achieved through a series of actions or steps.

Reaching Goals

The process of setting, pursuing, and ultimately achieving objectives, whether personal, professional, or organizational.

Human Resources

A department within an organization focused on the management, support, and development of the organization's workforce, including hiring, training, benefits, and employee relations.