If an Increase in Planned Investment of $70 Billion Causes

question 21

Multiple Choice

If an increase in planned investment of $70 billion causes equilibrium output demanded to rise by $280 billion,the value of the marginal propensity to consume is

• A)4
• B)4/3
• C)1/3
• D)1/4
• E)3/4

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Definitions:

Resting Potential

The difference in electric charge between the inside and outside of a resting neuron, providing the cell with the potential to generate an action potential.

Neural Membrane

The lipid bilayer that encloses the cytoplasm of a neuron, maintaining the electrical potential used in signal transmission.

Electrical Polarization

The phenomenon where in a material, or in the particles of the material, there is a separation of charge leading to one part becoming more positively charged and another part more negatively charged.

Synaptic Vesicles

Membrane-bound sacs in the synapse that store neurotransmitters and release them into the synaptic cleft to transmit neural signals between neurons.