If the Government Decreases Its Purchases of Goods and Services

question 70

Multiple Choice

If the government decreases its purchases of goods and services by $12,000 and the MPS is 0.5, GDP and income will eventually decrease by

• A) $2,400.
• B) $6,000.
• C) $24,000.
• D) $60,000.

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Definitions:

Detrusor Muscle

A smooth muscle that contracts to push urine from the bladder into the urethra.

Loop of Henle

A long, U-shaped portion of the tubule that conducts urine within each nephron of the kidney. It plays an important role in concentrating urine and recovering water and ions from the urine.

Proximal

Anatomical term meaning closer to a point of attachment or closer to the trunk of the body.