Assume the MPC Is 2/3

question 167

Multiple Choice

Assume the MPC is 2/3. If investment spending increases by $2 billion, the level of GDP will increase by

• A) $3 billion.
• B) $2/3 billion.
• C) $6 billion.
• D) $2 billion.

---

Definitions:

False Consensus Effect

A psychological bias where individuals believe their own viewpoints, actions, and behaviors are more common in the general population than they actually are.

Actors

Individuals who perform in stage plays, movies, television shows, or other productions, portraying characters.

Observers

Individuals who watch or notice something without directly participating in the action.

Private Thoughts

Thoughts that are not expressed verbally or shared with others, often personal or reflective in nature.