Assume an MPC of 0

question 107

Multiple Choice

Assume an MPC of 0.75.The change in total spending for the economy as a result of a $20 billion new government spending injection would be:

• A) $80 billion.
• B) $27 billion.
• C) $22 billion.
• D) $15 billion.

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Definitions:

Tension

A state of mental or emotional strain, often arising from situations of conflict or opposition within social contexts.

Conflict

A struggle or clash between opposing individuals, groups, ideas, or interests, which can take various forms such as social, political, or personal.

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist who developed the theory of Marxism, analyzing the effects of capitalism on labor, productivity, and economic development.

Max Weber

A German sociologist, philosopher, and political economist known for his theories on the process of rationalization and his studies of bureaucracy.