If the MPC=0

question 27

Multiple Choice

.If the MPC=0.8 and the 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:

Anesthetic

An anesthetic is a substance that causes the loss of sensation, either locally or generally, to prevent pain during surgical procedures.

Anesthetic

A substance that induces insensitivity to pain, used during surgical procedures to induce loss of sensation or consciousness.

Insensibility

The lack of physical sensation or the inability to react to sensory stimuli.

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage.