If the MPC Is 5/6 Then the Multiplier Is

question 74

Multiple Choice

If the MPC is 5/6 then the multiplier is

• A)6/5,so a $200 increase in government spending increases aggregate demand by $240.
• B)5,so a $200 increase in government spending increases aggregate supply by $1000.
• C)6,so a $200 increase in government spending increases aggregate demand by $1200.
• D)6/5,so a $200 increase in government spending increases aggregate supply by $1200.

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Definitions:

Correlation

A measure or degree of relationship between two variables where changes in one variable correspond to changes in the other, though not necessarily implying causation.

Self-Selected Sample

A sample where only the people most interested in the poll or survey participate.

Interested in Poll

The act of showing curiosity or concern about the results or methodology of a survey designed to gauge public opinion or preferences.

Inductive Arguments

A type of reasoning that draws general conclusions from specific observations or instances.