Suppose That Planned Investment Increases by $200 Billion and That

question 71

Multiple Choice

Suppose that planned investment increases by $200 billion and that the marginal propensity to consume equals 0.80.The aggregate expenditure line will shift upward by __________ at every level of real GDP.

• A)$40 billion
• B)$160 billion
• C)$200 billion
• D)$250 billion
• E)$1,000 billion

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Definitions:

Autonomy

The right or condition of self-government, or in healthcare and ethics, the capacity of a patient to make an informed, uncoerced decision.

Advance Directive

Legal documents that specify an individual's preferences regarding medical treatment in situations where they are unable to communicate their wishes.

Percutaneous Umbilical Blood Sampling (PUBS)

A diagnostic medical procedure that involves sampling of the fetal blood directly from the umbilical cord to test for conditions in the fetus.

Teratogens

Agents like chemicals, viruses, or radiation, that can cause developmental abnormalities or birth defects in an embryo or fetus.