Assuming That MPC Is

question 107

Multiple Choice

Assuming that MPC is .75, equal increases in government spending and tax collections by $10 billion will:

• A) Leave the equilibrium GDP unchanged
• B) Increase the equilibrium GDP by $10 billion
• C) Increase the equilibrium GDP by $2.5 billion
• D) Reduce the equilibrium GDP by $10 billion

---

Definitions:

Bipolar I Disorder

Mood disorder characterized by extremely elevated moods during manic episodes.

Auditory Stimulus

Any sound that elicits a response from the hearing system.

Hallucination

is a perception in the absence of external stimulus that has qualities of real perception, often visual or auditory.

Delusion

A strongly held belief that is clearly false or not grounded in reality, often symptomatic of psychiatric disorders such as schizophrenia.