In a Simple, Private Economy, Suppose That the MPC Is

question 38

Multiple Choice

In a simple, private economy, suppose that the MPC is 0.8 and investment rises by $20 million.At the new equilibrium, how much will saving have increased?

• A)$8 million
• B)$16 million
• C)$20 million
• D)$80 million
• E)$100 million

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Definitions:

Subsequent Carrying

The process of recording or managing an asset on the balance sheet after its initial recognition, reflecting any changes in value.

Employees' Lounge

A designated area within a workplace set aside for employees to relax, take breaks, and socialize, often equipped with amenities for comfort or entertainment.

HVAC System

A technology of indoor and vehicular environmental comfort that stands for Heating, Ventilation, and Air Conditioning, used to provide thermal comfort and acceptable indoor air quality.

Depletion Expense

A method of allocating the cost associated with the exhaustion of natural resources (like minerals, oil, and gas) over their productive life.