If Net Exports Fall $40 Billion and the MPC Is

question 295

Multiple Choice

If net exports fall $40 billion and the MPC is 8/11 and there is a multiplier effect, but no crowding out and no investment accelerator, then

• A)aggregate demand falls by 3 x $40 billion.
• B)aggregate demand falls by 11/3 x $40 billion.
• C)aggregate demand falls by 11/8 x $40 billion.
• D)None of the above is correct.

---

Definitions:

Lipoproteins

Molecules made of fat and protein that transport lipids (fats) in the blood.

Cholesterol

A waxy, fat-like substance found in all cells of the body, necessary for making hormones, vitamin D, and substances that help digest foods.

LDL

Low-Density Lipoprotein, often referred to as "bad" cholesterol, which can lead to plaque buildup in arteries, increasing the risk of heart disease.

Peptidases

Enzymes that break down peptides into their component amino acids by cleaving the peptide bonds between them.