If the Marginal Propensity to Consume (MPC) Is 4/5, a Decrease

question 39

Multiple Choice

If the marginal propensity to consume (MPC) is 4/5, a decrease in government purchases by $10 billion, other things constant, will ultimately lead to a:

• A)$30 billion increase in aggregate demand in an economy.
• B)$10 billion increase in aggregate demand in an economy
• C)$10 billion decrease in aggregate demand in an economy.
• D)$50 billion decrease in aggregate demand in an economy.
• E)$8 billion decrease in aggregate demand in an economy.

Understand the psychological and emotional aspects of aging, including the impact of retirement and loss.

Understand strategies to enhance safety for elderly individuals while driving.

Identify appropriate gifts for elderly individuals that enhance their safety and independence.

Recognize the importance of adapting the living environment to meet the needs of elderly individuals.

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Definitions:

Data Set

A collection of related sets of information that is composed of separate elements but can be manipulated as a unit by a computer.

Median

A statistical measure representing the middle value in a set of numbers, which divides the data into two equal halves.

Mean

An average of a group of values, computed by dividing the sum of the group of values by the number of values in the group.

Frequency Distribution

A mathematical function showing the number of instances in which a variable attains each of its possible values.