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.

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Definitions:

Safes

Secure containers designed for protecting valuable items, documents, and firearms from theft or damage.

Functions As Money

This refers to the various roles that money plays in an economy, including serving as a medium of exchange, a unit of account, and a store of value.

Authorized

Authorized refers to something that has been officially approved or sanctioned, often related to authority or permissions in a legal, professional, or organizational context.

Precious Metals

Metals of high economic value, such as gold, silver, and platinum, often used as investments or in manufacturing.