If the Marginal Propensity to Consume (MPC)is 0

question 167

Multiple Choice

If the marginal propensity to consume (MPC) is 0.90, a $100 increase in investment spending, other things being equal, will cause an increase in equilibrium real GDP of:

• A)$90.
• B)$100.
• C)$900.
• D)$1,000.

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Definitions:

Medication

Substances used to treat or manage diseases and conditions, including prescription drugs, over-the-counter remedies, and supplements.

Symptoms

Indications or signs of a condition, disease, or change in the body's state.

Frederick W. Taylor

An American mechanical engineer who is considered the father of scientific management, emphasizing efficiency, systematic study of tasks, and standardization of work practices.

Employers

Entities that hire and compensate individuals for their work and services.