Suppose Real GDP Increases from $13 Trillion to $14 Trillion

question 174

Multiple Choice

Suppose real GDP increases from $13 trillion to $14 trillion. Consequently, consumption expenditure increases from $13 trillion to $13.75 trillion. This result implies the MPS equals

• A) 0.75.
• B) 0.25.
• C) 0.
• D) some amount that cannot be determined without more information.

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Definitions:

Costs

The amount of money required to purchase, maintain, produce, or invest in a product, service, or asset.

Inadequate Building Size

A scenario where the physical dimensions of a building do not meet the needs or requirements for its intended use or occupancy.

Self-Actualization

A stage in human psychological development identified by Abraham Maslow where individuals realize their fullest potential, fulfilling personal talents and capabilities.

Motivation

The forces that act on or within a person that cause the person to behave in a specific manner.