If Net Exports Increase by $10 Billion and the MPC

question 57

Multiple Choice

If net exports increase by $10 billion and the MPC to 0.6,what will the resulting increase in the consumption component of AD be?

• A)$25 billion
• B)$15 billion
• C)$6 billion
• D)$4 billion

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Definitions:

Office Supplies

Various items and materials such as pens, paper, and files, used in offices for the purpose of maintaining smooth business operations.

General Journal

A basic accounting book or document used to record all the day-to-day financial transactions of a business.

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period of time, typically less than one year.

General Journal

A comprehensive accounting ledger that records all types of financial transactions before they are posted to more specific accounts.