If the MPC Is 0

question 43

Multiple Choice

If the MPC is 0.80 and there are no crowding-out or accelerator effects,then an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right by

• A) $80 billion.
• B) $125 billion.
• C) $500 billion.
• D) $800 billion.

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Definitions:

Resistance To Change

Refers to the act of opposing or struggling with modifications or transformations that alter the status quo in an organization or personal life.

Same Rules

The principle of "same rules" refers to the application of uniform policies and guidelines to all members of a group, organization, or system, ensuring fairness and consistency in decision-making and behavior.

Increased Efficiency

The improvement in performance or productivity, achieving more output from the same or fewer inputs.

More Skilled

Refers to possessing higher levels of competence, expertise, or proficiency in a particular area or field compared to others.