If MPC = 0

question 83

Multiple Choice

If MPC = 0.75, a $40 billion decrease in government purchases would have what size effect on the "first round" of induced added consumption?

• A)​$30 billion
• B)​$40 billion
• C)​$120 billion
• D)​$160 billion

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Definitions:

Planarians

Flatworms belonging to the Turbellaria class, known for their remarkable regenerative ability and as subjects of biological research.

Circulatory System

The body system that functions in internal transport and protects the body from disease.

Cephalopods

Cephalopods are a class of mollusks that include squid, octopuses, and cuttlefish, known for their advanced nervous systems, complex eyes, and ability to change color and texture.

Open Circulatory System

A type of circulatory system found in some invertebrates where blood flows freely in the body cavity, bathing organs directly in blood.