If the MPC Is 0

question 43

Multiple Choice

If the MPC is 0.6 and if the goal is to increase real GDP by $200 million, then by how much would government spending have to change to generate this increase in real GDP?

• A) $240 million.
• B) $200 million.
• C) $180 million.
• D) $80 million.

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Definitions:

Problem Orientation

An individual's or group's approach and attitude towards tackling problems, including their cognitive appraisal of challenges and resources.

Alternatives Generation

The process of generating multiple solutions or options in response to a problem or challenge.

Man-Made Disaster

Disasters resulting from human actions or technologies, causing damage to life and property.

Life Stressor

Events or conditions in one's surroundings that cause stress and can affect an individual's emotional and physical health.