In an Economy That Has No Foreign Trade, If Real

question 130

Multiple Choice

In an economy that has no foreign trade, if real GDP declines by $160 million following a decline in investment spending of $40 million, then the marginal propensity to consume must be equal to _____.

• A)2
• B)0.33
• C)4
• D)0.75
• E)0.4

---

Definitions:

Self-praise

The act of recognizing or celebrating one's own achievements or qualities, contributing to self-confidence and motivation.

Covert Negative

Internal, negative thoughts or beliefs that are not openly expressed but influence feelings and behaviors.

Stimulus Control

The modification of behavior by manipulating the factors that trigger or discourage it.

Antecedent

An event, condition, or cause that precedes and potentially triggers an effect or outcome.