Assume the MPC Is 0

question 100

Multiple Choice

Assume the MPC is 0.65.Assuming only the multiplier effect matters,a decrease in government purchases of $20 billion will shift the aggregate demand curve to the

• A)left by about $30.77 billion.
• B)left by about $57.1 billion.
• C)right by about $57.1 billion.
• D)right by about $30.77 billion.

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Definitions:

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to release stored energy through the oxidation of acetyl-CoA derived from carbohydrates, fats, and proteins.

Myocytes

Muscle cells; also called muscle fibers.

Muscle Fibers

The long, slender cells that make up muscles, capable of contracting to produce movement.

Sarcoplasm

The cytoplasm of a muscle fiber.