If Net Exports Decrease by $10 Billion and the MPC

question 48

Multiple Choice

If net exports decrease by $10 billion and the MPC is 0.9,what is the ultimate change in GDP?

• A) $100 billion
• B) -$10 billion
• C) $10 billion
• D) -$100 billion
• E) -$9 billion

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Definitions:

Ulnar Nerve

A nerve running along the ulna bone of the arm into the hand, responsible for sensations in the forearm and parts of the hand.

Intrinsic Hand Muscles

The muscles located within the hand responsible for fine motor movements, including finger flexion and extension.

Flexor Muscles

Muscles that decrease the angle between two bones at a joint, typically described in the limbs.

Filium Terminale

A filament of connective tissue that extends from the conus medullaris to anchor the spinal cord in the coccyx.