If the MPC Is 0

question 405

Multiple Choice

If the MPC is 0.75 and there are no crowding-out or accelerator effects, then an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right by

• A)$80 billion.
• B)$125 billion.
• C)$400 billion.
• D)$500 billion.

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Definitions:

Time Duration

The measurement of the amount of time that passes between the start and end of an event or period.

Static Variables

Variables that retain their value between function calls and are scope-limited to the function, block, or file where they are declared.

Register

A small amount of fast storage area within the CPU where data or instructions can be stored temporarily.

High-Speed Storage

Refers to storage devices or mediums that offer fast read/write speeds, such as SSDs or RAM.