An Increase in Government Expenditures by $100 (Unmatched by an Increase

question 151

Multiple Choice

An increase in government expenditures by $100 (unmatched by an increase in taxes) would, if the MPC = 0.90, result in an increase in real GDP by:

• A)$1,000.
• B)$9,000.
• C)$900.
• D)$190.
• E)inadequate information is given.

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Definitions:

Ceramic Rod

A type of non-metallic rod made from ceramic materials, often used for applications requiring high temperature resistance or electrical insulation.

Carbon

A chemical element, with symbol C, that is the basis of all known life on earth, capable of forming multiple stable covalent bonds.

Tolerance

The permissible limit of variation in a physical dimension or electrical component's performance, indicating the range within which the actual value is accepted to differ from the specified value.

Multiplier Band

The multiplier band is a component on a resistor that indicates the multiplication factor to be applied to the combined value of the first bands to determine the resistor's resistance value.