If the MPC Is 0

question 1

Multiple Choice

If the MPC is 0.8 and there are no crowding-out or accelerator effects,then an initial increase in aggregate demand of $120 billion will eventually shift the aggregate demand curve to the right by

• A)$216 billion.
• B)$150 billion.
• C)$600 billion.
• D)$480 billion.

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Definitions:

Uncertainty Avoidance Culture

Cultures that exhibit a low tolerance for uncertainty and ambiguity, often relying on strict rules, regulations, and procedures to minimize the unpredictability of future events.

Individual Rights

The freedoms and legal entitlements allowed to each person in a society.

Short-Term Orientation

A perspective or approach focusing on immediate outcomes or benefits rather than long-term goals or implications.

Social Obligations

The responsibilities or duties that individuals feel they owe to others in their social groups or communities.