Suppose the MPC in the Economy in Figure 10

question 119

Multiple Choice

Suppose the MPC in the economy in Figure 10.2 equals 0.8 and the shift from AD₀ to AD₁ was caused by a decrease in investment of $30 billion.What will the total decrease in aggregate demand be (i.e.,AD₀ to AD₂) as a result of the initial $30 billion decrease?

• A)$37.5 billion.
• B)$130 billion.
• C)$150 billion.
• D)$240 billion.

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Definitions:

Compromised Human Dignity

A state or situation in which an individual's respect, self-worth, and privacy are diminished or violated.

Alcohol-induced

Conditions or effects directly caused by the consumption of alcohol.

Sexually Transmitted Infection

An infection transmitted through sexual contact, caused by bacteria, viruses, or parasites.

Self-mutilation

The deliberate harm or alteration of one’s own body tissue without suicidal intent.