If the MPC = 0

question 14

Multiple Choice

If the MPC = 0.8 and both government purchases and autonomous net taxes fall by $100 billion, by how much does the equilibrium level of real GDP demanded change (assuming neither income taxes nor net exports exist) ?

• A)-$100 billion
• B)+$100 billion
• C)-$500 billion
• D)+$500 billion
• E)+$200 billion

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Definitions:

Referrals

The process by which a healthcare provider directs a patient to a specialist or other professional for additional assessment or treatment.

Birth Control

Methods or devices used to prevent pregnancy as part of family planning.

Sexual Activity

Any action that results in arousal or sexual gratification involving one or more people.

Discomfort

A mild to moderate state of physical or emotional unease, often less intense than pain.