If the MPC Is 0

question 86

Multiple Choice

If the MPC is 0.70 and investment increases by $3 billion, the equilibrium GDP will

• A) increase by $10 billion.
• B) increase by $2.10 billion.
• C) decrease by $4.29 billion.
• D) increase by $4.29 billion.

---

Definitions:

Conditioned Fear

A learned response to a stimulus that was previously neutral but has been paired with an aversive event.

Loud Noise

Auditory stimuli that are of high decibel level, potentially causing hearing damage or stress.

Toy Dog

A term used to describe small dog breeds that are often kept as companions or pets, characterized by their compact size and playful nature.

Stimulus Generalization

A process in learning where a response to a specific stimulus becomes associated with similar stimuli.