Suppose Marginal Propensity to Consume (MPC) Is 0

question 109

Multiple Choice

Suppose marginal propensity to consume (MPC) is 0.7 and there is a $100 increase in autonomous consumption. Given this information, real GDP will increase by

• A) $333.
• B) $143.
• C) $1,000.
• D) $700.

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Definitions:

Abstract Image

An artistic representation that does not attempt to portray an accurate depiction of visual reality, instead using shapes, colors, and textures in a non-literal manner.

Mental Pictures

are the images or visual representations formed in the mind, often used in memory or imaginative processes.

Reality

The state of things as they actually exist, as opposed to an idealistic or notional idea of them.

Peplau's Model

A theory in nursing that highlights the interpersonal relationship between the nurse and the patient to facilitate healing.