If an Increase in Autonomous Consumption Spending of $25 Million

question 135

Multiple Choice

If an increase in autonomous consumption spending of $25 million results in a $100 million increase in equilibrium real GDP,then

• A)the MPC is 0.25.
• B)the MPC is 0.75.
• C)the MPC is 0.8.
• D)the MPC is 2.5.

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Definitions:

Statute of Frauds

A legal requirement for certain types of contracts, such as those involving real estate, to be in written form to be valid.

Sales Contracts

Sales contracts are formal agreements between a buyer and seller detailing the terms of a transaction of goods or services.

Retail Arena

The overall retail environment or marketplace where businesses sell goods and services to consumers.

UCC

The Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.