If the MPC Is 0

question 148

Multiple Choice

If the MPC is 0.75 and there are no crowding-out or accelerator effects, an initial increase in AD of $200 billion will eventually shift the AD curve to the right by how much?

• A)$80 billion
• B)$133.33 billion
• C)$150 billion
• D)$800 billion

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Definitions:

Line Graph

A type of chart used to display information as a series of data points connected by straight line segments, often to show trends over time.

Cumulative Frequency

The sum of a class and all classes below it in a frequency distribution.

Frequency Polygon

A graphical representation of the distribution of a dataset that shows the frequency of data points within certain intervals.

Variation

A term describing the extent to which data points in a dataset differ from each other and from the mean.