Suppose That the MPC Is 0

question 21

Multiple Choice

Suppose that the MPC is 0.7,there is no investment accelerator,and there are no crowding-out effects.If government expenditures increase by $30 billion,then aggregate demand

• A)shifts rightward by $100 billion.
• B)shifts rightward by $51 billion.
• C)shifts rightward by $170 billion.
• D)shifts rightward by $72.8 billion.

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Definitions:

Colon

A part of the large intestine that absorbs water and salts from food remnants, turning them into solid waste for excretion.

Ultrasound

The noninvasive therapeutic or diagnostic use of very high frequency sound waves for examination of internal body structures.

High-Frequency Sound Waves

Sound waves with frequencies higher than those audible to humans, used particularly in medical imaging and diagnostics.

Echoes

The sounds reflected back to the source by an obstruction, helping in determining the location of objects through echolocation or used in diagnostic tools like ultrasounds.