If the MPC Is 5/6 Then the Multiplier Is

question 74

Multiple Choice

If the MPC is 5/6 then the multiplier is

• A)6/5,so a $200 increase in government spending increases aggregate demand by $240.
• B)5,so a $200 increase in government spending increases aggregate supply by $1000.
• C)6,so a $200 increase in government spending increases aggregate demand by $1200.
• D)6/5,so a $200 increase in government spending increases aggregate supply by $1200.

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Definitions:

Paget's Disease

A chronic bone disorder that can lead to bone enlargement and deformity, affecting one or more bones.

Enlarged Bones

A condition characterized by the abnormal enlargement or thickening of bones, often due to diseases like osteoarthritis or acromegaly.

Humpback

A condition, also known as kyphosis, where there is an excessive outward curve of the spine, causing a hunched back.

Kyphosis

A forward rounding of the back, leading to a hunched posture, which can be due to various medical conditions.