If MPC=08 and MPM=0

question 13

Multiple Choice

.If MPC=0.8 and MPM=0.05,a $100 million increase in exports will lead to:

• A)a $400 million increase in equilibrium GDP.
• B)a $400 million decrease in equilibrium GDP.
• C)a $500 million increase in equilibrium GDP.
• D)a $500 million increase in equilibrium GDP

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Definitions:

Remarry

The act of getting married again following a divorce or the death of one's spouse.

Custodial parent

The parent who is granted the primary right to determine the child's upbringing, including living arrangements and day-to-day care, in the event of a divorce or separation.

Stepparent

A person married to one's parent after a divorce or death of the biological parent, not biologically related to the child.

Economic remarriage

A concept that refers to a remarriage primarily motivated by financial considerations or benefits.