If an Initial Increase in Investment Spending of $30 Caused

question 174

Multiple Choice

If an initial increase in investment spending of $30 caused equilibrium output to increase by $120,what is the value of the MPC?

• A) 0.25
• B) 0.50
• C) 0.60
• D) 0.75
• E) 0.80

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Definitions:

AVERAGEIF

An Excel function that calculates the average of all numbers in a range that meet specified criteria.

Financial Functions

Specific mathematical formulas used in spreadsheets or financial software to perform calculations related to finance, such as interest rates, payments, and investment returns.

FV

Future Value, a finance function that calculates the future value of an investment based on a constant interest rate and fixed payments over time.

PMT

A financial function that calculates the payment for a loan based on constant payments and a constant interest rate.