If an Increase in Autonomous Consumption Spending of $25 Million

question 67

Multiple Choice

If an increase in autonomous consumption spending of $25 million results in a $100 million increase in equilibrium real GDP, then

• A)the MPC is 0.25.
• B)the MPC is 0.75.
• C)the MPC is 0.8.
• D)the MPC is 0.9.
• E)the MPC is 2.5.

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Definitions:

Diagnostic Criteria

The set of standards or conditions used to diagnose a disease, condition, or situation accurately.

Eligible

Meeting the set criteria or conditions required for participation or access to a specific benefit, service, or position.

Serious Problems

Issues that pose significant threats or obstacles to individuals, communities, or societies and require immediate attention or resolution.

Consumer-outcome Criteria

Measures or benchmarks used to evaluate the results or impacts of services and products on users.