If Equilibrium Real GDP Demanded Rises from $4 Trillion to $6

question 1

Multiple Choice

If equilibrium real GDP demanded rises from $4 trillion to $6 trillion when government purchases increase by $1 trillion,how large is the marginal propensity to consume?

• A)0.8
• B)0.4
• C)0.5
• D)0.2
• E)2

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Definitions:

Malpighian Tubules

Excretory structures found in some arthropods, including insects and spiders, that remove waste products from the blood and excrete them into the digestive tract.

Nephridia

Excretory organs in many invertebrates, functioning in the elimination of metabolic wastes.

Insects

Small arthropods with a chitinous exoskeleton, three-part body, three pairs of jointed legs, compound eyes, and one pair of antennae.

Nephridiopores

External openings of nephridia, excretory organs found in some invertebrates, allowing waste to exit the body.