If the MPC Is 0

question 201

Multiple Choice

If the MPC is 0.8 and disposable income shrinks by $100 million.Consumption would

• A) rise by $8 million
• B) rise by $80 million
• C) fall by $80 million
• D) fall by $8 million
• E) fall by $20 million

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Definitions:

Exports

Products or services manufactured in a particular country and purchased by consumers in a different country, adding to the national income of the exporter.

Imports

Products or services that are transported into a country from abroad with the intent of being sold.

International Trade

The trading of products, services, and money across the borders or territories of different countries.

Merchandise Exporting

The act of sending goods produced in one country to be sold in another country.