Suppose That the MPC Is 0

question 294

Multiple Choice

Suppose that the MPC is 0.60; there is no investment accelerator; and there are no crowding-out effects. If government expenditures increase by $25 billion, then aggregate demand

• A)shifts rightward by $62.5 billion.
• B)shifts rightward by $50.0 billion.
• C)shifts rightward by $32.5 billion.
• D)None of the above is correct.

---

Definitions:

Long-Term Needs

Describes requirements or desires that are projected over an extended period, often associated with strategic planning and goals.

Publicity Test

The publicity test is an ethical guideline suggesting that an individual or company should only engage in actions that they would not be embarrassed or concerned about if these actions became public knowledge.

Ethical Decision-Making Metric

A set of guidelines or criteria used to ensure that decisions and actions within an organization are conducted with integrity, fairness, and responsibility.

Ethical-Decision Making Process

A structured approach to determining the best ethical course of action, considering various ethical principles and the impact of decisions on stakeholders.