If an Economy's MPC Is 0

question 93

Multiple Choice

If an economy's MPC is 0.8 and the MPM is 0.05, then an increase in government spending of $2,000 will increase income by

• A) $5,500.
• B) $8,000.
• C) $10,000.
• D) $20,000.

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Definitions:

Simp

An internet slang term originally used to describe someone who performs excessive sympathy or attention towards another person, often without reciprocation.

Add

To combine or join together to increase in size, number, or importance.

Simp

A slang term often used disparagingly to describe someone who exhibits excessive sympathy or attention towards another person, typically someone they are romantically interested in, without receiving any affection in return.

Conj

A shortened form for "Conjunction," indicating a grammatical or logical connector that joins two or more elements in discourse.