Suppose the Marginal Propensity to Consume (MPC)is 0

question 65

Multiple Choice

Suppose the marginal propensity to consume (MPC) is 0.9 and there is a $3,000 increase in planned investment. Given this information, real GDP will increase by

• A)$3,000.
• B)$2,700.
• C)$30,000.
• D)$3,333.

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Definitions:

Scientific Research

A systematic and organized attempt to investigate specific questions and propose explanations based on gathered evidence.

Replication

The process of repeating a research study or experiment to confirm its results.

Experiment

A methodical investigation conducted to test a hypothesis by manipulating and controlling certain variables to observe the effect on other variables.

Psychology Course

An academic unit or program that studies the mind, behavior, and the underlying psychological processes, often covering topics such as cognition, emotion, and social interaction.