Scenario 11-1 The Information Below Is Relevant to the Following Question(s)

question 108

Multiple Choice

Scenario 11-1
The information below is relevant to the following question(s) .
Assume IBM decides,despite an ongoing recession,to build a new branch for computer analysis in Bozeman,Montana.The plant expects to spend $12 million to hire the necessary employees,all of whom move in from out of state to take the jobs.
-Refer to Scenario 11-1.If the marginal propensity to consume of the newly-employed workers was 3/4,what would be the total change in income that would result from the operation of the plant for one year?

• A)$12 million
• B)$48 million
• C)$9 million
• D)$27 million

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Definitions:

Bipolar Disorder

A mental condition marked by extreme mood swings, including periods of mania and depression.

Schizophrenia

A chronic and severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Obsessive-compulsive Disorder

A mental disorder characterized by recurrent, unwanted thoughts (obsessions) and/or repetitive behaviors (compulsions) that the person feels driven to perform.

Electroconvulsive Therapy

A psychiatric treatment involving electrically induced seizures to provide relief from mental disorders.