The MPC Is 0

question 116

Multiple Choice

The MPC is 0.90 and there are no income taxes or imports.If government expenditures on goods and services increase by $2.0 billion,after the multiplier effect works out,aggregate expenditure increases by

• A)$1.8 billion.
• B)$2.0 billion.
• C)$2.22 billion.
• D)$20 billion.
• E)$10 billion.

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Definitions:

Discrimination

Bias and discriminatory actions against persons due to their race, age, or gender.

Pigeon

A bird of the family Columbidae, known for its ability to find its way home over long distances and commonly used in research in psychology.

Peck

A brief, pointed contact or strike, typically referring to the action of a bird using its beak.

Primary Reinforcer

A stimulus that satisfies a basic biological need and inherently reinforces a behavior without the need for learning.