Suppose the MPC in the Economy in Figure 10

question 9

Multiple Choice

Suppose the MPC in the economy in Figure 10.2 equals 0.5 and the shift from AD₀ to AD₁ was caused by a decrease in consumption of $12 billion.What will the total decrease in aggregate demand be (for example,AD₀ to AD₂) as a result of the initial $12 billion decrease?

• A)$12 billion because there are no multiplier effects associated with a change in consumption.
• B)$600 billion.
• C)$24 billion.
• D)$60 billion.

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Definitions:

Environmental PH

The measure of how acidic or basic a given environment is, influencing many ecological and biological processes.

Enzyme Activity

The rate at which an enzyme catalyzes its specific biochemical reaction, converting substrates into products.

Receptor-Mediated Endocytosis

A cellular process by which cells absorb external substances through the inward folding of their plasma membrane, allowing specific molecules to enter the cell via receptors.

Specific Molecules

Refers to unique molecules that have a distinct composition and structure, serving specific roles in various biological and chemical processes.