Suppose the Marginal Propensity to Consume (MPC) Equals 0

question 445

Multiple Choice

Suppose the marginal propensity to consume (MPC) equals 0.80, an increase in autonomous investment of $200 will lead to an increase in real Gross Domestic Product (GDP) by

• A) $400.
• B) $500.
• C) $800.
• D) $1,000.

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Definitions:

Self-Awareness

The knowledge of how you are being perceived by others.

Clusters

Groups of similar things or people positioned or occurring closely together.

Psychological Script

is a sequence of expected behaviors, roles, and actions that are associated with a particular social situation.

Transactional Analysis

A psychological theory that examines the interactions and dynamics between individuals, aiming to understand the ways in which people communicate and behave in various contexts.