In an Economy That Has No Foreign Trade, If Real

question 130

Multiple Choice

In an economy that has no foreign trade, if real GDP declines by $160 million following a decline in investment spending of $40 million, then the marginal propensity to consume must be equal to _____.

• A)2
• B)0.33
• C)4
• D)0.75
• E)0.4

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Definitions:

Palatine Tonsils

A pair of soft tissue masses located at the rear of the throat, part of the immune system.

Soft Palate

The flexible, muscular part at the back of the roof of the mouth, playing a crucial role in swallowing and speech.

Uvula

The small, fleshy extension at the back of the throat, which hangs above the throat, playing roles in speech and swallowing.

Pharyngeal Tonsils

Lymphoid tissue located in the upper part of the throat, also known as adenoids, which play a role in the immune response.