If an Increase in Autonomous Consumption Spending of $10 Million

question 88

Multiple Choice

If an increase in autonomous consumption spending of $10 million results in a $50 million increase in equilibrium real GDP,then

• A)the MPC is 0.5.
• B)the MPC is 0.75.
• C)the MPC is 0.8.
• D)the MPC is 0.9.

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Definitions:

Stimulus Control

The modification of behavior by manipulating the factors that trigger or discourage it.

Antecedent

An event, condition, or cause that precedes and potentially triggers an effect or outcome.

Emitted

Released or given off, often used in the context of substances, light, sounds, or signals.

Self-monitoring Device

A tool or application used to track personal behaviors, symptoms, or physiological states, often for the purpose of health management or psychological self-assessment.