Assume the Marginal Propensity to Consume Is 0

question 79

Multiple Choice

Assume the marginal propensity to consume is 0.8. If consumer spending increases by $20 billion, then real GDP will:

• A) Increase by $100 billion
• B) Decrease by $100 billion
• C) Increase by $16 billion
• D) Will not change

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Definitions:

Neurological Program

A structured regimen or protocol established for the treatment or study of the nervous system and its disorders.

Puberty

A developmental period marked by the onset of sexual maturity and physical growth in adolescence.

Secular Trend

A long-term trend observed over several generations or years, often pertaining to societal, physical, or behavioral changes.

Adulthood

The stage of life following adolescence, where an individual is considered legally and socially responsible and typically shows mature behavior.