If the MPC Is 0

question 1

Multiple Choice

If the MPC is 0.8 and there are no crowding-out or accelerator effects,then an initial increase in aggregate demand of $120 billion will eventually shift the aggregate demand curve to the right by

• A)$216 billion.
• B)$150 billion.
• C)$600 billion.
• D)$480 billion.

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Definitions:

Tenant-Days

A metric used in property management to describe the cumulative number of days all tenants occupy a space within a defined period.

Static Budget

A financial plan that does not change over the period it covers, even if actual figures deviate from the planned amounts.

Patient-Visits

A metric in healthcare indicating the number of times patients visit a healthcare provider or facility.

Total Variable Cost

The sum of all costs that vary directly with the level of production, including materials and labor.