If the MPC in an Economy Is 0

question 106

Multiple Choice

If the MPC in an economy is 0.9, a $1 billion increase in government spending will ultimately increase consumption by

• A)$1 billion.
• B)$0.9 billion.
• C)$10 billion.
• D)$9 billion.

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Definitions:

Sartre

Jean-Paul Sartre, a French existentialist philosopher, playwright, novelist, political activist, and literary critic noted for his analysis of the nature of existence and freedom.

Mitwelt

A term from existential psychology referring to the world of relationships with others and the social environment.

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone; the highest level of psychological development in Maslow's hierarchy of needs.

Angst

A profound and deep-seated feeling of dread, anxiety or anguish often associated with the existential concerns of human freedom and responsibility.