If Government Spending Increased by $200 Billion and the MPC

question 36

Multiple Choice

If government spending increased by $200 billion and the MPC within the economy was 0.9, what would be the total impact on real GDP?

• A)​$180 billion increase
• B)​$222 billion increase
• C)​$380 billion increase
• D)​$2.0 trillion increase

---

Definitions:

Openness to Experience

A personality trait characterized by an individual's willingness to try new things, engage in a variety of experiences, and embrace novelty and change.

Conscientiousness

A character quality marked by being well-organized, reliable, and having a profound sense of responsibility.

Peer Acceptance

The degree to which an individual is socially accepted by their peers, influencing their social status and relationships.

Trait

Personality characteristics that are stable over time and across situations, thought to describe consistent behaviors in individuals.