Suppose Business Decision Makers Become More Optimistic About the Future

question 21

Multiple Choice

Suppose business decision makers become more optimistic about the future and, as a result, increase their investment spending by $20 billion. If the economy's marginal propensity to consume is 0.75, the equilibrium level of aggregate real GDP will increase by:

• A) $15 billion.
• B) $20 billion.
• C) $50 billion.
• D) $80 billion.

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Definitions:

Online Pastimes

Activities or hobbies that individuals engage in on the internet, such as gaming, social media, or consuming digital content.

Virtual Meetings

Gatherings conducted via telecommunication technologies, allowing participants to interact without physical co-location.

Competitive Advantage

The distinctive characteristics or situations that enable a company to surpass its rivals in performance.

Low Costs

A strategy or situation characterized by minimal expenses or financial outlay, aimed at achieving competitive advantage or operational efficiency.