Assume the Marginal Propensity to Consume Is 0

question 126

Multiple Choice

Assume the marginal propensity to consume is 0.8.If consumer spending increases by $20 billion, then real GDP will

• A)increase by $100 billion.
• B)decrease by $100 billion.
• C)increase by $16 billion.
• D)not change.

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Definitions:

Heterosporous

Referring to plants that produce two types of spores, microspores which develop into male gametophytes and megaspores which develop into female gametophytes.

Vascular Tissues

Specialized structures in plants that conduct water, nutrients, and sugars throughout the organism.

Free-Living Gametophytes

Independent gametophyte plants that do not depend on the sporophyte generation for their lifecycle, typical in some plant groups such as bryophytes.

Reproductively Superior

Having genetic or physiological attributes that enhance an organism's ability to reproduce and pass on genes to the next generation.