Suppose That the Marginal Propensity to Consume (MPC)is

question 377

Multiple Choice

Suppose that the marginal propensity to consume (MPC) is .75 and there is an increase in investment spending of $100,000. As a result, equilibrium real Gross Domestic Product (GDP) would increase by

• A)$75,000.
• B)$100,000.
• C)$400,000.
• D)$750,000.

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Definitions:

Organisms

Any individual living entity that can react to stimuli, reproduce, grow, and maintain homeostasis.

Autotrophic Organisms

Organisms capable of synthesizing their own food from inorganic substances using light or chemical energy.

Macromolecules

Large molecules necessary for life, including proteins, nucleic acids, carbohydrates, and lipids.

Synthesize

To produce a substance by the combination of chemical elements, groups, or simpler compounds or by the degradation of complex compounds.