If the MPC Is 5/6 Then the Multiplier Is

question 74

Multiple Choice

If the MPC is 5/6 then the multiplier is

• A)6/5,so a $200 increase in government spending increases aggregate demand by $240.
• B)5,so a $200 increase in government spending increases aggregate supply by $1000.
• C)6,so a $200 increase in government spending increases aggregate demand by $1200.
• D)6/5,so a $200 increase in government spending increases aggregate supply by $1200.

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Definitions:

Disulfiram

A medication used to support the treatment of chronic alcoholism by producing an acute sensitivity to ethanol (drinking alcohol).

Intoxicated

The state of being under the influence of alcohol or drugs, impairing cognitive and physical functions.

Psychiatric Unit

A designated area within a hospital or standalone facility that provides care and treatment for people with mental health conditions.

Detoxification Unit

A specialized facility or area in a hospital where patients undergo detoxification, especially from alcohol or drug addiction, in a controlled and medically supervised environment.