If an Economy's MPC Is 0

question 93

Multiple Choice

If an economy's MPC is 0.8 and the MPM is 0.05, then an increase in government spending of $2,000 will increase income by

• A) $5,500.
• B) $8,000.
• C) $10,000.
• D) $20,000.

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Definitions:

Anxiety

A psychological disorder identified by powerful feelings of unease, worry, or terror that substantially hinder daily life activities.

Mental Health Referral

The process of directing a patient to appropriate psychiatric or psychological services for further evaluation and treatment.

Feeling Alone

A subjective sensation of isolation or detachment from others, regardless of whether one is physically alone.

Nervous and Uneasy

Feelings of anxiety, discomfort, or apprehension, often without a clear cause.