If the Marginal Propensity to Consume Is 0

question 181

Multiple Choice

If the marginal propensity to consume is 0.75 and investment spending increases by $200 billion,by how much will equilibrium output increase?

• A) $350 billion
• B) $150 billion
• C) $200 billion
• D) $266.7 billion
• E) $800 billion

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Definitions:

Modifiable Risk Factors

Aspects of one's health or lifestyle that can be changed to improve health outcomes or reduce disease risk.

Hyperventilate

Breathing more rapidly or deeply than normal, leading to excessive expulsion of carbon dioxide, which can cause dizziness or a feeling of light-headedness.

Increased Metabolic Demands

The body's need for more energy due to physical activity, growth, stress, or illness, requiring a higher intake of nutrients.

Decreased Drive

A reduction in the motivation or desire to engage in particular activities.