Assume the MPC Is 0

question 103

Multiple Choice

Assume the MPC is 0.8.Assuming only the multiplier effect matters,a decrease in government purchases of $100 billion will shift the aggregate demand curve to the

• A)left by $180 billion.
• B)left by $500 billion.
• C)right by $180 billion.
• D)right by $400 billion.

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Definitions:

Meditate

To engage in contemplation or reflection, often focusing the mind on a particular object, thought, or activity to achieve a mentally clear and emotionally calm state.

Physical Exercise

Physical exercise refers to any bodily activity that enhances physical fitness and overall health and wellness.

Bradycardia

A slower than normal heart rate, which can lead to potential health concerns if it limits the heart's ability to pump blood effectively.

Epigastric Pain

Discomfort or pain located in the upper abdomen, typically above the stomach.