If the MPC Is 0

question 41

Multiple Choice

If the MPC is 0.4,the initial impact of an increase of $10 billion in government purchases will be to cause a(n) :

• A)$4 billion rise in the economy's output
• B)$10 billion rise in the economy's output
• C)extra $6 billion in withdrawals
• D)extra $10 billion in withdrawals
• E)extra $4 billion in injections

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Definitions:

Perspective

The capacity to view things in their true relations or relative importance, often considering different viewpoints or angles.

Rules

Explicit or implicit principles or guidelines that govern behavior in various contexts and systems.

Regulations

Rules or directives made and maintained by an authority to control or govern behavior, often within a specific industry or activity.

Preconventional

The first level in Kohlberg's stages of moral development, where moral reasoning is based primarily on perceived consequences of actions and obedience to authority.