Assume the Marginal Propensity to Save Is 0

question 38

Multiple Choice

Assume the marginal propensity to save is 0.10. Firms become optimistic and increase investment spending by $10 billion. Other things being equal, real GDP will:

• A) increase by $1 billion.
• B) not change.
• C) increase by $10 billion.
• D) increase by $100 billion.

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Definitions:

Strongest Family Ties

The most robust and enduring bonds and relationships within a family, characterized by mutual support, loyalty, and attachment.

Grandparents and Grandchildren

The relationship and bond between grandparents and their grandchildren, often characterized by love, mentoring, and nurturing.

Siblings

Brothers or sisters, including those related by birth, adoption, or marriage.

Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.