If the MPC Is 0

question 111

Multiple Choice

If the MPC is 0.75 and there are no crowding-out or accelerator effects, an initial increase in AD of $100 billion will eventually shift the AD curve to the right by how much?

• A) $40 billion
• B) $133.33 billion
• C) $250 billion
• D) $400 billion

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Definitions:

Life Spans

The length of time for which an organism lives, ranging from days or weeks in some insects to centuries in some trees.

Parental Care

The behaviors or activities of parents aimed at ensuring the survival and well-being of their offspring.

Population Size

The total number of individuals within a defined area at a specific time.

Growth Rate

The rate at which an organism or population increases in size, often measured over a specific period.