If the MPC Is 3/5 Then the Multiplier Is

question 33

Multiple Choice

If the MPC is 3/5 then the multiplier is

• A)4, so a $100 increase in government spending increases aggregate demand by $400.
• B)1.5, so a $100 increase in government spending increases output by $150.
• C)2.5, so a $100 increase in government spending increases aggregate demand by $250.
• D)1.67, so a $100 increase in government spending increases output by $166.67.

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Definitions:

Schizophrenia

A mental disorder characterized by delusions, hallucinations, disorganized speech and behavior, and impaired cognitive function.

Word Salad

A jumbled mixture of words and phrases that lack logical coherence, often seen in severe cases of mental confusion or disorder.

Positive Symptoms

Symptoms of a disorder that are characterized by the presence of unusual behaviors or feelings, such as hallucinations in schizophrenia.

Schizophrenia

A serious mental illness marked by significant abnormalities in cognition, perception, emotional regulation, communication, self-awareness, and actions.