Exhibit 13.1 Assume the Marginal Propensity to Consume for U.S.households Equals 0.9,and

question 38

Multiple Choice

Exhibit 13.1
Assume the marginal propensity to consume for U.S.households equals 0.9,and the marginal propensity to import for the United States equals 0.1.Suppose there occurs an increase in investment of $10 billion at each level of income.
-Refer to Exhibit 13.1.The change in the level of U.S.income resulting from the additional investment spending equals

• A) $20 billion
• B) $30 billion
• C) $40 billion
• D) $50 billion

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Definitions:

Human Brain

The central organ of the human nervous system, responsible for processing sensory information, regulating bodily functions, and enabling cognition and emotions.

Biological Predisposed

Refers to the inherent tendency of an organism to develop certain traits or behaviors based on genetic factors.

Evolutionary Psychologists

Researchers who study the evolutionary basis of human behaviors and mental processes.

Genetic Predispositions

The inherited genetic patterns that influence the likelihood of developing certain diseases or behaviors.