If the MPC = 0

question 124

Multiple Choice

If the MPC = 0.8, and planned autonomous investment increases by $80 billion, then equilibrium real GDP will increase by

• A) $64 billion.
• B) $80 billion.
• C) $320 billion.
• D) $400 billion.

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Definitions:

Annual Profit

The total revenue of a business minus total expenses over the course of a year, indicating the financial performance and health of the business.

Demand Patterns

Observable trends or behaviors in customer demand over time, influencing inventory management and production planning.

Payoff Table

A decision-making tool used in business and economics to display the outcomes (or payoffs) of different strategies or decisions under various states of nature.

Expected Value Criterion

Represents a decision-making approach that utilizes the weighted average of all possible outcomes, considering the probabilities of each outcome to assess the best decision under uncertainty.