Assume the Marginal Propensity to Consume (MPC) Is 0

question 189

Multiple Choice

Assume the marginal propensity to consume (MPC) is 0.75 and the economy is in recession with real GDP $1 trillion below full-employment real GDP. To achieve full employment, aggregate demand (AD) must be increased $2 trillion. Following discretionary fiscal policy, government spending should be increased:

• A) $0.25 trillion.
• B) $1 trillion.
• C) $0.5 trillion.
• D) $2 trillion.

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Definitions:

NAPs

Network Access Points are physical locations where Internet service providers connect with each other in peering arrangements to exchange traffic across the Internet.

Internet Traffic

The flow of data across the internet, consisting of a multitude of data transferred across various networks around the globe.

IPv6

The latest version of the Internet Protocol which provides an identification and location system for computers on networks and routes traffic across the Internet.

Online Content

Any material, such as articles, videos, and images, that is available on the internet.