If the MPC Is 0

question 88

Multiple Choice

If the MPC is 0.5, and the government cuts spending by $400 billion, the overall effect on GDP will be:

• A) a decrease of $400 billion.
• B) an increase of $400 billion.
• C) a decrease of $800 billion.
• D) an increase of $800 billion.

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Definitions:

Implicit Memory

A form of memory where past encounters assist in executing a task without actively remembering those past encounters.

Word Fragments

Incomplete segments of words used in psychological tests of memory, perception, or linguistic processing.

Procedural Memory

A subtype of long-term memory that involves the unconscious memory of how to perform different actions and skills.

Cerebral Trauma

Injury to the brain caused by an external force, potentially leading to temporary or permanent cognitive, physical, and psychosocial impairments.