If MPC = 0

question 4

Multiple Choice

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

• A)​reduce "first round" consumption by $160 billion; reduce AD by $640 billion
• B)​reduce consumption by $120 billion; reduce AD by $480 billion
• C)​reduce consumption by $40 billion; reduce AD by $160 billion
• D)​reduce consumption by $30 billion; reduce AD by $160 billion

---

Definitions:

Rachel Whiteread

A British artist known for her sculptures, which often involve casting the space around or within objects to explore presence and absence.

Last Supper

A famous biblical event that was the final meal Jesus shared with his Apostles before his crucifixion, also a popular subject in Christian art.

Marisol Escobar

A Venezuelan-American artist known for her wood sculptures and tableaus that combine folk art, pop art, and social commentary.

Self-Portrait

An artistic representation of the artist by themselves, often used as a means of personal expression and exploration of identity.