If Spending Increases by $200, and GDP Increases by $1,000

question 43

Multiple Choice

If spending increases by $200, and GDP increases by $1,000 as a result, what must the MPC be?

• A) 0.80
• B) 0.75
• C) 4
• D) 5

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Definitions:

Business Ownership

The legal possession and responsibility for a business entity, including sole proprietorships, partnerships, corporations, and limited liability companies.

Industry Weakness

Aspects or characteristics of an industry that represent disadvantages or vulnerabilities, potentially hindering its performance or growth.

Process Innovation

Involves the introduction or improvement of goods, services, or processes, enhancing effectiveness or efficiency.

Organize Business's Resources

The process of effectively allocating and managing an organization's assets, including human, financial, and physical resources, to achieve its objectives.