If Autonomous Spending Increases by $500 Billion And, as a Result

question 190

Multiple Choice

If autonomous spending increases by $500 billion and, as a result, equilibrium real GDP increases by $2 trillion, then we know that the

• A) MPC is greater than 1.
• B) expenditure multiplier is 0.25.
• C) expenditure multiplier is 4.0.
• D) MPC equals 1.
• E) expenditure multiplier is 2.0.

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Definitions:

Ergonomically

In a manner designed to optimize human well-being and overall system performance, often referring to the design of products or work environments.

Ambiguous Situations

Circumstances characterized by uncertainty, unclear options, or lack of specific information, requiring interpretation or decision-making with limited guidance.

Clear Sense

A thorough understanding or perception of a situation, concept, or task at hand.

Instrumental Values

Beliefs or values that act as methods or tools for achieving desired end states or objectives.