If the MPS Is One-Third, a $100 Increase in Net

question 40

Multiple Choice

If the MPS is one-third, a $100 increase in net exports will

• A)reduce real Gross Domestic Product (GDP)by $100.
• B)reduce real Gross Domestic Product (GDP)by $300.
• C)increase real Gross Domestic Product (GDP)by $33.
• D)increase real Gross Domestic Product (GDP)by $300.

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Definitions:

Equalizing Opportunities

Efforts or policies aimed at leveling the playing field so that individuals have equal chances to succeed, regardless of their background or circumstances.

Demographic Group

A segment of the population defined by certain characteristics such as age, race, gender, or income, used in statistical analysis and marketing.

Economic Life Cycle

The different stages an individual goes through from dependence to independence, potentially to wealth accumulation, and finally to retirement and dependence once more, in terms of earning and spending.

Savings Rates

The portion of disposable income that individuals, businesses, or economies save rather than spend on consumption, usually expressed as a percentage.