The Nation Has Its Own MPC

question 67

Multiple Choice

The nation has its own MPC. When national income increases from $300 billion to $400 billion, national consumption increases from $300 billion to $360 billion. At Y = $400 billion, the MPC is:

• A) 0.2.
• B) 0.5.
• C) 0.6.
• D) 0.67.
• E) 1.33.

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Definitions:

Groupthink

A phenomenon in group decision-making processes where the desire for harmony or conformity results in an irrational or dysfunctional outcome.

Direct Pressure

A form of influence where someone attempts to coerce others into doing something or changing their behavior through explicit demands, persuasion, or intimidation.

Team's Illusions

False beliefs or perceptions shared among members of a team regarding their effectiveness, cohesion, or capabilities.

Groupthink

A phenomenon in which the desire for group cohesion leads to poor decision-making or the suppression of dissenting opinions within a group.