If the MPC Is 0

question 23

Multiple Choice

If the MPC is 0.8, and the government spends an additional $100 billion, the overall effect on GDP will be _______ billion.

• A) $400
• B) $500
• C) $120
• D) $180

---

Definitions:

Sample Mean

The average value of a sample set of numbers, calculated by adding all the observations and dividing by the number of observations.

Observations

Data points or values recorded during an experiment or study.

Sample

A subset of individuals, items, or data from a larger population used to estimate characteristics of the whole population.

Mean Times

The average duration or period for an event or series of events.