Investment Increases by $200 Million and the Value of MPC

question 144

Multiple Choice

Investment increases by $200 million and the value of MPC is 0.75.What would be the total increase in spending?

• A)$200 million
• B)$266 million
• C)$750 million
• D)$800 million

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Definitions:

Traffic Congestion

The condition on transport networks that occurs as use increases and is characterized by slower speeds and longer trip times.

Privatize National Defense

The concept of transferring national defense responsibilities from the government to private entities.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Cost-Benefits Analysts

Professionals who evaluate the economic advantages and disadvantages of a decision by comparing the costs of an action to its benefits.