If the Government Increases Spending by $400 Billion, and the MPC

question 47

Multiple Choice

If the government increases spending by $400 billion, and the MPC is 0.75, the change in GDP will be:

• A) $400 billion.
• B) $1,600 billion.
• C) $300 billion.
• D) $1,200 billion.

---

Definitions:

Consumer-Initiated

pertains to actions or transactions that are started by the consumer rather than the business, emphasizing the active role consumers play in the buying process.

Marketer's Website

A digital platform used by marketers to promote products, services, or brands, often incorporating tools for analytics, SEO, and consumer engagement.

Embedded Links

Hyperlinks placed within a digital content that, when clicked, take the user to another webpage or section, facilitating navigation or providing additional information.

Mouse Click

A physical action where a user presses a button on a computer mouse to select, activate, or interact with digital elements on a screen.