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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

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Definitions:

Trade Barriers

Restrictions imposed by a government on international trade, such as tariffs, quotas, and import bans, to protect domestic industries.

Negative Balance of Trade

A situation where a country's imports of goods and services exceed its exports, resulting in a trade deficit.

Net Exports

represents the difference between a country's total value of exports and its total value of imports, indicating the balance of trade.

Exports

Merchandise or services dispatched to a different country for the sake of trade or sales.

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