Assume That the MPC Is

question 204

Multiple Choice

Assume that the MPC is .75, and investment spending rises by $25 billion.How much will real GDP change?

• A)$25 billion 
• B)$75 billion 
• C)$100 billion 
• D)$175 billion

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Definitions:

Normally Distributed

Describes a statistical distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.

Mean

The average value of a set of numbers, indicating the central point of a data distribution.

Standard Normal

A normal distribution with a mean of zero and a standard deviation of one, used as the basis for z-scores in statistics.

Standard Deviation

A metric that calculates how much a dataset's values spread out or diverge from their average.