If the MPC of an Economy Is 0

question 110

Multiple Choice

If the MPC of an economy is 0.90 and the economy has a horizontal aggregate supply curve, then an increase in investment spending of $50 million will increase total income by

• A)$50 million.
• B)more than $50 million but less than $500 million.
• C)$500 million.
• D)more than $500 million.

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Definitions:

Self-Concept

An individual's perception of themselves, encompassing beliefs, feelings, and thoughts about one's identity and attributes.

Ideal Self

Refers to a person's conception of how they would like to be, embodying their aspirations, goals, and personal standards.

Mental Health

A state of well-being in which an individual realizes their own abilities, can cope with the normal stresses of life, can work productively, and is able to make a contribution to their community.

Self-Regulation

The ability of an individual to manage their thoughts, emotions, and behaviors towards achieving long-term goals.