If the Government Spends $1 Billion to Create a Wetlands

question 7

Multiple Choice

If the government spends $1 billion to create a wetlands preserve, taxes increase $1 billion to pay for it, and the marginal propensity to consume is 0.75, GDP

• A) decreases by $1 billion.
• B) increases by $1 billion.
• C) increases by $4 billion.
• D) remains unchanged.

---

Definitions:

Heel Stick

A simple and minimally invasive procedure used to collect a small blood sample from a newborn's heel for testing.

Ill Neonate

A newborn baby who is sick or has medical conditions requiring immediate medical attention.

Conjunctival Sac

The thin, protective space between the eyelid and the eye itself, where eye drops or medications can be administered.

Eye Drops

A liquid medication or solution administered into the eye to treat a variety of conditions, such as infections, dryness, or glaucoma.