If Investment Decreases by $20 Billion and the MPC =

question 129

Multiple Choice

If investment decreases by $20 billion and the MPC = 0.8, the resulting decrease in the consumption component of AD is:

• A)​$16 billion.
• B)​$4 billion.
• C)​$100 billion.
• D)​$80 billion.

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Definitions:

Conventional Morality

A stage in moral development where individuals make moral decisions based on societal rules and laws.

Intuitionist

An advocate or adherent of intuitionism, a philosophy that posits the primary role of intuition in knowledge or moral judgment.

Statistician

A professional specializing in the collection, analysis, interpretation, and presentation of numerical data.

Physical Maturity

The stage of development when an individual's physical characteristics have reached the highest stage of growth according to age and genetic potential.