The MPC = 2/3

question 66

Multiple Choice

The MPC = 2/3. Autonomous spending rises by $12 million. What is the maximum potential impact on GDP after the full multiplier effect?

• A) It decreases by $36 million.
• B) It decreases by $20 million.
• C) It increases by $20 million.
• D) It increases by $36 million.

Grasp the concept and duration of an operating cycle in a business.

Know the optional nature of reversing entries in bookkeeping.

Recognize the role and content of worksheets in preparing financial statements.

Differentiate between long-term investments and property, plant, and equipment in the context of a balance sheet.

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Definitions:

Jugular Foramen

A large opening in the skull that allows passage of the jugular vein and several nerves, located between the temporal and occipital bones.

Skull Canal

An anatomical passage or opening in the skull bone through which nerves or vessels pass.

Ethmoid Bone

A delicate, spongy bone located between the eyes, forming part of the nasal cavity and the orbits of the eyes.

Special Senses

The senses that have specialized organs devoted to them, including vision, hearing, taste, and smell.