If Investment Decreases by $20 Billion and the MPC Is

question 58

Multiple Choice

If investment decreases by $20 billion and the MPC is 0.8,what will the resulting decrease in the consumption component of AD be?

• A)$16 billion
• B)$4 billion
• C)$100 billion
• D)$80 billion

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Definitions:

Inductors

Passive electrical components designed to resist changes in current, storing energy in a magnetic field when current flows through them.

Current Flow

The movement of electric charge carriers, such as electrons, through a conductor or semiconductor.

Resistance

The opposition to the flow of electric current, measured in ohms, affecting how much current flows through a circuit.

Inductor

An inductor is a passive electronic component that stores energy in a magnetic field when electric current flows through it, used in various filtering, tuning, and energy storage applications.