The Nation Has Its Own MPC

question 67

Multiple Choice

The nation has its own MPC. When national income increases from $300 billion to $400 billion, national consumption increases from $300 billion to $360 billion. At Y = $400 billion, the MPC is:

• A) 0.2.
• B) 0.5.
• C) 0.6.
• D) 0.67.
• E) 1.33.

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Definitions:

Gilbert Stuart

An American painter renowned for his portraits of prominent figures, most famously George Washington.

Charles Willson Peale

An American painter, soldier, and naturalist known for his portraits of leading figures of the American Revolution and the early United States.

John Trumbull

An American artist known for his historical paintings, particularly those that capture scenes from the American Revolutionary War.

American Revolution

The period (1765-1783) during which the thirteen American colonies fought for and gained independence from British rule.