If the MPC Is 0

question 113

Multiple Choice

If the MPC is 0.6, and the government increases spending by $300 billion, the overall effect on GDP will be:

• A) a decrease of $750 billion.
• B) an increase of $750 billion.
• C) a decrease of $550 billion.
• D) an increase of $250 billion.

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Definitions:

Dopamine Overactivity

A condition where there is an excess of dopamine activity in the brain, often associated with disorders such as schizophrenia.

Hallucinations

Sensory experiences that appear real but are created by the mind, without any external presence of the actual stimulus.

Dopamine Receptors

Proteins located on the surface of neurons in the brain that bind to dopamine, a neurotransmitter involved in reward, motivation, and many aspects of behavior.

Hallucinations

Perceptions in the absence of external stimuli, such as seeing, hearing, or feeling something that isn't there.