If the MPC Equals 0

question 48

Multiple Choice

If the MPC equals 0.75 and G increases by $100,real GDP demanded will increase by

• A)75 percent
• B)25 percent
• C)$50
• D)$200
• E)$400

---

Definitions:

Economic Determination

The concept that economic factors are the primary influence on social structures and human behavior, shaping societal norms, values, and roles.

Determinist

A philosophical position that suggests every event, action, and decision results from something independent of the human will.

Positivist Perspective

A philosophical approach that emphasizes empirical and scientific evidence to understand and explain social phenomena.

Absolutist

Adopting a perspective or stance that does not allow for flexibility, compromise, or variation; seeing things in an absolute, unchangeable way.