Assume That the MPC Is

question 78

Multiple Choice

Assume that the MPC is .9 and investment falls by $30 billion.What is the change in real GDP?

• A)−$300 billion 
• B)−$270 billion 
• C)−$93 billion 
• D)−$39 billion

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Definitions:

Psychological Disorders

Mental health conditions characterized by alterations in thinking, mood, or behavior associated with distress and/or impaired functioning.

Prevalence Rates

The proportion of a population found to have a condition at a specific time.

Phobia

An extreme or irrational fear or aversion to something, significantly impacting a person’s ability to function.

Normal Fear

Describes a rational and adaptive emotional response to perceived threats or dangers.