If the Marginal Propensity to Consume Is 0

question 215

Multiple Choice

If the marginal propensity to consume is 0.75 and government purchases of goods and services decrease by $30 billion, real GDP will:

• A)increase by $30 billion.
• B)increase by $22.5 billion.
• C)decrease by $30 billion.
• D)decrease by $120 billion.

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Definitions:

Muscle End Plate

A specialized area of muscle fiber membrane where a motor neuron terminates and transmits nerve impulses to the muscle, leading to contraction.

Neurotransmitter-activated Ion Channels

Ion channels that open in response to the binding of a neurotransmitter, allowing ions to enter or exit the neuron and alter its electrical charge.

Myasthenia Gravis

Myasthenia Gravis is an autoimmune disorder characterized by weakness and rapid fatigue of any of the muscles under voluntary control, caused by a breakdown in communication between nerves and muscles.

Autoimmune Disease

Autoimmune disease occurs when the body's immune system mistakenly attacks healthy cells, leading to various conditions characterized by inflammation and tissue damage.