If Net Exports Decrease by $10 Billion and the MPC

question 48

Multiple Choice

If net exports decrease by $10 billion and the MPC is 0.9,what is the ultimate change in GDP?

• A) $100 billion
• B) -$10 billion
• C) $10 billion
• D) -$100 billion
• E) -$9 billion

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Definitions:

Consultative Leader

A leadership style where the leader seeks input from team members before making decisions, emphasizing collaboration and advice.

Group Development

A dynamic process involving stages through which groups pass as they evolve, including forming, storming, norming, performing, and adjourning.

Formalizing

Formalizing means making something official or structured, often with documented rules or procedures.

Autocratic Leadership

A style of leadership where a single person has complete control over decision-making, with minimal contribution from other members of the group.