If the MPC of an Economy Is 0

question 110

Multiple Choice

If the MPC of an economy is 0.90 and the economy has a horizontal aggregate supply curve, then an increase in investment spending of $50 million will increase total income by

• A)$50 million.
• B)more than $50 million but less than $500 million.
• C)$500 million.
• D)more than $500 million.

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Definitions:

Ecosystem Processes

The natural cycles and exchanges of energy and nutrients that sustain the functioning and biodiversity of ecological systems.

Environmental Racism

the disproportionate impact of environmental hazards on minority ethnic groups, often because of discriminatory policies or practices that expose these communities to pollutants.

Aboriginal Communities

Groups of indigenous people who are native to a particular geographical region, often maintaining practices, languages, and beliefs distinct from those of dominant cultures.

Bioprospecting

The process of searching for, collecting, and deriving medicinal or commercial products from biological resources, often involving indigenous knowledge.