If Net Exports Increase by 100 and the Mpc Is

question 81

Multiple Choice

If net exports increase by 100 and the mpc is 0.75,equilibrium aggregate output increases by

• A)100.
• B)250.
• C)400.
• D)750.

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Definitions:

Dollar Votes

The concept that consumers "vote" for the products they prefer through the dollars they spend.

Consumer Sovereignty

The concept that consumers have the ultimate control over what goods and services are produced by choosing what to purchase with their money.

Economically Most Efficient

A situation or method that yields the maximum output without wasting resources.

Labor And Capital

The two primary factors of production; labor represents human contribution, while capital includes tools, equipment, and technology used in production.