Assume the MPC Is 2/3

question 167

Multiple Choice

Assume the MPC is 2/3. If investment spending increases by $2 billion, the level of GDP will increase by

• A) $3 billion.
• B) $2/3 billion.
• C) $6 billion.
• D) $2 billion.

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Definitions:

Practical

Focused on or concerned with the actual doing or use of something rather than with theory and ideas.

Interpret

The act of explaining or providing the meaning of something, often requiring analysis of data, text, or artwork.

Information

Data that is processed, organized, or structured in a way that it is meaningful or useful to the person receiving it.

Organize

The act of arranging or structuring elements in a systematic way to achieve a specific goal or manage tasks efficiently.