If the Marginal Propensity to Consume (MPC) Is 0

question 53

Multiple Choice

If the marginal propensity to consume (MPC) is 0.75, and if the goal is to increase real GDP by $400 million, then by how much would government spending have to change to generate this increase in real GDP?

• A) $140 million.
• B) $100 million.
• C) $200 million.
• D) $400 million.

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Definitions:

Compound Statement

A series of statements enclosed by braces that are executed sequentially in programming.

Compile

The process of converting source code written in a high-level programming language into machine code that can be executed by a computer.

Runtime Error

An error that occurs during the execution of a program, often due to illegal operations or flawed logic.

Compile

The process of converting source code written in a high-level programming language into machine code that a computer can understand and execute.