If the MPC Is

question 45

Multiple Choice

If the MPC is .70 and gross investment increases by $3 billion, the equilibrium GDP will:

• A)increase by about $10 billion.
• B)increase by $2.10 billion.
• C)decrease by $4.29 billion.
• D)increase by $4.29 billion.

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Definitions:

Glomerulus Filtration Rate

Glomerulus Filtration Rate (GFR) is a test used to check how well the kidneys are functioning by estimating how much blood passes through the glomeruli each minute.

Afferent Arterioles

Small blood vessels that carry blood toward the nephrons in the kidney, regulating blood pressure and filtration rate by constricting or dilating.

Aldosterone

A hormone produced by the adrenal glands that helps regulate the balance of salts and water in the body by promoting the reabsorption of sodium and excretion of potassium in the kidneys.

Urine Volume

The total amount of urine excreted by the kidneys in a given time period, which can indicate hydration levels or kidney function.