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.

---

Definitions:

Qualitative Sociologists

Researchers in the field of sociology who focus on detailed, descriptive studies of social phenomena, often employing methods such as ethnography, interviews, or content analysis.

Scientific Inquiry

The systematic investigation of the natural world based on observation, experimentation, and evidence to answer questions and test hypotheses.

Values

Fundamental beliefs or principles that guide behaviors and decision-making in individuals or societies.

Social Issue

Problems that influence a considerable number of individuals within a society, recognized by a significant portion of society as being undesirable and necessitating intervention.