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:

Object Concept

The mental representation and understanding of objects, including their properties and how they relate to other objects.

Circular Reactions

Behaviors repeated over and over again, often observed in infant development, which serve to consolidate learning and motor skills.

Qualitatively Different

Describes items or phenomena that differ in essence or kind, not just in quantity or scale.

Fixed Order

A predetermined sequence that must be followed, commonly referring to steps in a process or procedure.