If Government Spending Increased by $100 Billion and the MPS

question 24

Multiple Choice

If government spending increased by $100 billion and the MPS within the economy was 0.25, what would be the total impact on real GDP?

• A)​$25 billion increase
• B)​$75 billion increase
• C)​$133 billion increase
• D)​$400 billion increase

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Definitions:

Neglected

The state of not receiving sufficient attention, care, or consideration, often leading to feeling forgotten or overlooked.

Fertility Rate

The average number of children born to a woman over her lifetime within a population, a key demographic measure.

World War I

A global conflict that took place from 1914 to 1918, primarily involving European nations, marked by trench warfare and significant military and civilian casualties.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and marked by significant events like the Holocaust and atomic bombings of Hiroshima and Nagasaki.