If an Increase in Autonomous Consumption Spending of $10 Million

question 89

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 0.2.
• B)the MPC is 0.5.
• C)the MPC is 0.75.
• D)the MPC is 0.8.
• E)the MPC is 0.9.

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Definitions:

Brachiocephalic Vein

A large vein formed by the union of the internal jugular and subclavian veins, draining blood from the head, neck, upper limbs, and upper chest.

Thorax

The part of the body between the neck and the abdomen, enclosed by the ribs and containing the heart and lungs.

Hepatic Portal System

System of portal veins that carries blood from the intestines, stomach, spleen, and pancreas to the liver.

Gastric Vein

A vein draining blood from the stomach into the portal vein system.