If the Marginal Propensity to Consume Is 0

question 181

Multiple Choice

If the marginal propensity to consume is 0.75 and investment spending increases by $200 billion,by how much will equilibrium output increase?

• A) $350 billion
• B) $150 billion
• C) $200 billion
• D) $266.7 billion
• E) $800 billion

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Definitions:

Constants

Fixed values that remain unchanged throughout the execution of a program.

Recursive Functions

Functions that call themselves directly or indirectly, allowing for solutions to problems that can be broken down into simpler, identical problems.

Memory Stack

A region of memory used for storing temporary variables created by each function call, operates in a last-in, first-out (LIFO) manner.