If the MPC of an Economy Is

question 148

Multiple Choice

If the MPC of an economy is .90 and the economy has a horizontal aggregate supply curve, then an increase in investment spending of $50 million will increase total income by

• A)$50 million.
• B)more than $50 million but less than $500 million.
• C)$500 million.
• D)more than $500 million.

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Definitions:

Personal Expenses

Outlays or expenditures that individuals make for personal, non-business activities, goods, or services.

Constructive Notification

Information or knowledge that is legally deemed to have been obtained by a party, even if not directly received, through recorded documents or public filings.

Termination Notice

A written notification indicating the end of an agreement or contract, typically specifying the date and terms of termination.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, wherein the debtor's assets are measured and used to repay a portion of the outstanding debts to creditors.