Given an MPC of 0

question 26

Multiple Choice

Given an MPC of 0.80, if there are no income taxes or imports and prices are constant, then when investment increases by $50 million and prices are fixed, equilibrium GDP would

• A) increase by $50 million.
• B) increase by $250 million.
• C) increase by $400 million.
• D) To answer the question more information on income is needed.

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Definitions:

Fuel Efficiency

The measure of how far a vehicle can travel on a specific amount of fuel, often quantified as miles per gallon or liters per 100 kilometers.

Energy Consumption

The amount of energy used by processes, devices, or systems, often measured in kilowatt-hours (kWh) or megajoules, and is a critical factor in assessing environmental impact and efficiency.

Transportation Strategy

Planning and execution related to the movement of goods or services from one location to another, aiming to optimize efficiency and cost.

Rail

A mode of transportation that involves the movement of goods or passengers on trains along a set of tracks.