If the Marginal Propensity to Consume (MPC) Is 0

question 406

Multiple Choice

If the marginal propensity to consume (MPC) is 0.8 and there is a desire to increase real GDP by $400 billion, then

• A) an increase in autonomous real consumption spending of $100 billion will generate this change.
• B) a decrease in autonomous real saving of $400 billion will generate this change.
• C) an increase in planned real investment spending of $100 billion will generate this change.
• D) an increase in real autonomous spending of $80 billion will generate this change.

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Definitions:

Physical Environment

The external surroundings and conditions in which an organism lives, including natural and man-made environments.

Lev Vygotsky

A Russian psychologist known for his work on cognitive development, particularly the social development theory which emphasizes the role of social interaction in the development of cognition.

Social Mentoring

A supportive relationship where an experienced individual guides and assists another in social contexts, including personal development and networking.

Preoperational Stage

A stage in Piaget's theory of cognitive development, where children aged 2 to 7 years old develop memory and imagination, but do not yet think logically.