Assume That the MPC Is 0

question 43

Multiple Choice

Assume that the MPC is 0.85 and investment spending rises by $100 million.How much consumption spending will this generate in the second round of spending?

• A)$15 million
• B)$85 million
• C)$100 million
• D)$118 million
• E)$185 million

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Definitions:

Twin Studies

Research studies that compare the similarity between monozygotic (identical) twins and dizygotic (fraternal) twins to understand the role of genetic and environmental factors in diseases, behaviors, and traits.

Sexual Orientation

An enduring pattern of romantic or sexual attraction (or absence thereof) towards persons of the opposite sex, same sex, both sexes, or more than one sex.

Genetic Component

describes the portion of variation in a trait among individuals in a population that is due to genetic differences.

David McClelland

was a prominent psychologist known for his work on motivation theory, including the concepts of Need for Achievement, Power, and Affiliation.