Suppose That the Marginal Propensity to Consume (MPC)is

question 377

Multiple Choice

Suppose that the marginal propensity to consume (MPC) is .75 and there is an increase in investment spending of $100,000. As a result, equilibrium real Gross Domestic Product (GDP) would increase by

• A)$75,000.
• B)$100,000.
• C)$400,000.
• D)$750,000.

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Definitions:

Unconscious

According to Freud, a reservoir of mostly unacceptable thoughts, wishes, feelings, and memories. According to contemporary psychologists, information processing of which we are unaware.

Behaviorism

Behaviorism is a theory of learning based on the idea that all behaviors are acquired through conditioning, asserting that psychological disorders are best treated by altering behavior patterns.

Consciousness

The state of being awake and aware of one's surroundings, thoughts, feelings, and the self.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.