If Equilibrium Real GDP Demanded Rises from $4 Trillion to $6

question 1

Multiple Choice

If equilibrium real GDP demanded rises from $4 trillion to $6 trillion when government purchases increase by $1 trillion,how large is the marginal propensity to consume?

• A)0.8
• B)0.4
• C)0.5
• D)0.2
• E)2

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Definitions:

Coping

The process of managing stress or adversity through various strategies or mechanisms to minimize its psychological impact.

Hyperthyroidism

A condition in which the thyroid gland is overactive, producing excessive amounts of thyroid hormones, leading to a sped-up metabolism.

Hypothyroidism

A common endocrine disorder resulting from a deficiency of thyroid hormone, leading to symptoms like fatigue, weight gain, and cold intolerance.

Dysrhythmias

Abnormal disturbances in the rhythm of the heart.