If an Economy's MPC Is 0

question 300

Multiple Choice

If an economy's MPC is 0.95 and the MPM is 0.15, then an increase in government spending of $1,000 will increase income by

• A) $1,000.
• B) $4,500.
• C) $5,000.
• D) $8,000.

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Definitions:

Challenges

Refers to difficulties, obstacles, or issues that need to be overcome, and can stimulate learning, growth, or improvement.

Interobserver Reliability

The degree to which different observers or researchers agree on the observations or measurements they record, important for ensuring the validity of research results.

Concordance Reporting

The agreement between different sources or methods of reporting, often used in research to verify the reliability of data.

Subjectivity Elimination

The process or attempt to remove or reduce personal bias, preferences, and emotions in the assessment, observation, or decision-making process.