If the MPC Is 3/4 Then the Multiplier Is

question 319

Multiple Choice

If the MPC is 3/4 then the multiplier is

• A)4, so a $100 increase in government spending increases aggregate demand by $400.
• B)4, so a $100 increase in government spending increases output by $400.
• C)4/3, so a $100 increase in government spending increases aggregate demand by $400/3.
• D)4/3, so a $100 increase in government spending increases output by $400/3.

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Definitions:

Metabolic Disturbances

Disorders that affect the body's metabolism, including how it processes and utilizes nutrients, which can impact energy production and overall health.

Anorexia Nervosa

A psychological and potentially life-threatening eating disorder characterized by extremely low body weight, an intense fear of gaining weight, and a distorted perception of body weight and shape.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by compensatory behaviors, such as purging, to prevent weight gain.

Females

Refers to the sex of an organism or individual that typically produces eggs or has XX chromosomes, in species that have sexual differentiation.