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

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Definitions:

Powerholder

An individual or entity that possesses control and authority within a specific context, enabling them to influence outcomes.

Credible

Deserving of trust or belief; convincing or believable.

Milgram

Refers to a series of psychological experiments conducted by Stanley Milgram, which demonstrated the willingness of participants to obey authority figures, even to the point of inflicting harm on others.

Obedience

The act of following instructions or commands from someone in authority, often studied in the context of social psychology.