If the Marginal Propensity to Consume (MPC)is 0

question 372

Multiple Choice

If the marginal propensity to consume (MPC) is 0.8 and there is a desire to increase real GDP by $500 billion, then

• A)an increase in autonomous real consumption spending of $500 billion will generate this change.
• B)a decrease in autonomous real saving of $500 billion will generate this change.
• C)an increase in planned real investment spending of $200 billion will generate this change.
• D)an increase in real autonomous spending of $100 billion will generate this change.

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Definitions:

Yeast

A unicellular fungus (usually an ascomycete) that reproduces asexually by budding or fission, and sexually by ascospores.

Perforated Septum

A condition where the nasal septum, the bone and cartilage that separates the nasal cavity, has one or more holes.

Conidium

An asexual spore that is usually formed at the tip of a specialized hypha called a conidiophore.

Basidium

The clublike spore-producing organ of basidiomycetes that bears sexual spores called basidiospores.