Assume There Is No Crowding-Out Effect

question 66

Multiple Choice

Assume there is no crowding-out effect.If an increase in government spending of $10 billion raises the total aggregate demand by $50 billion, then the marginal propensity is:

• A)0.2
• B)0.5
• C)5
• D)0.8

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Definitions:

Birth Weight

The weight of a newborn measured immediately after birth, considered an important indicator of neonatal health and future development.

Teratogens

Agents or factors that can cause congenital abnormalities or increase the incidence of an anomaly in a fetus when a mother is exposed during pregnancy.

Embryo

An early stage in development of a multicellular organism following fertilization and before becoming a fetus.

Structural Development

The process of growth or evolution in the organizational or physical structure of something, which can be applied to various fields such as biology, economics, or architecture.