If the MPC Is

question 245

Multiple Choice

If the MPC is .9 and government spending increases by $10 billion,GDP will rise by $______ billion.

• A)9
• B)10
• C)90
• D)100
• E)120

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Definitions:

Nominal Rate

The stated or named interest rate on a loan or investment, not accounting for compounding or inflation.

Quarterly Deposits

funds that are added to an account or investment four times a year.

Annual Nominal Rate

The rate of interest charged on a loan or realized on an investment without adjusting for compounding or inflation over a year.

Semi-annual Period

A timeframe that spans half a year, often used in the context of finance for payments or interest calculations.