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:

Observable Responses

Behaviors or actions that can be seen or measured as a reaction to stimuli.

Behavioral Perspective

An approach in psychology focusing on observable behaviors and the ways in which the environment and learning influence actions.

Social-Cultural

Pertaining to the influences that social and cultural contexts have on human behavior and thinking.

Parenting Styles

The systematic approaches to child-rearing defined by the balance of responsiveness and demandingness; includes authoritative, authoritarian, permissive, and uninvolved styles.