If Autonomous Investment Increases by $200 Billion and the Marginal

question 286

Multiple Choice

If autonomous investment increases by $200 billion and the marginal propensity to consume (MPC) is 0.5, then

• A)real Gross Domestic Product (GDP)will rise by $400 billion.
• B)real Gross Domestic Product (GDP)will rise by $200 billion.
• C)real Gross Domestic Product (GDP)will rise by $100 billion.
• D)real Gross Domestic Product (GDP)will decrease by $100 billion.

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Definitions:

Locomotion

Movement from one place to another.

Neuron's Cell Body

The part of a neuron that contains the nucleus and the bulk of the cytoplasm, responsible for the cell's metabolic activity.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse, from one neuron (nerve cell) to another target neuron, muscle cell, or gland cell.

Pincer Grasp

The coordination of the index finger and thumb to hold an item, an important developmental milestone in infants.