Suppose That Planned Autonomous Investment Increases by $200 Billion and That

question 135

Multiple Choice

Suppose that planned autonomous investment increases by $200 billion and that the marginal propensity to consume equals 0.80.The equilibrium level of real GDP will increase by

• A)$40 billion
• B)$160 billion
• C)$200 billion
• D)$250 billion
• E)$1,000 billion

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Definitions:

Magnetic Resonance Imaging

A non-invasive imaging technique that uses strong magnetic fields and radio waves to generate detailed images of the inside of the body, especially useful for soft tissues.

Positron Emission Tomography

A medical imaging technique that uses radioactive tracers to visualize and measure changes in metabolic processes.

Electroencephalography

Electroencephalography is a diagnostic method used to measure and record the electrical activity of the brain.

Transcranial Magnetic Stimulation

A non-invasive procedure using magnetic fields to stimulate nerve cells in the brain, often used to treat depression.