Suppose the Overall MPC Is 0

question 159

Multiple Choice

Suppose the overall MPC is 0.75 and the marginal propensity to import is 0.25. A $4 billion increase in U.S. exports will lead to a ________ increase in GDP.

• A) $6 billion
• B) $8 billion
• C) $12 billion
• D) $16 billion

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Definitions:

Coercive Power

The power to force someone to do something against their will by using threats, punishment, or other forms of pressure.

Dynamic Variable

A concept or element that can change over time or in response to varying conditions within a given system.

Personal Power

The influence or authority a person possesses inherently, often derived from their expertise, skills, or personal characteristics rather than their formal position.

Position Power

The authority and influence a person possesses within an organization due to their role or title.