If an Economy's MPC Is 0

question 299

Multiple Choice

If an economy's MPC is 0.75 and the MPM is 0.25, then an increase in government spending of $2,000 will increase income by

• A) $2,100.
• B) $3,000.
• C) $4,000.
• D) $8,000.

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Definitions:

Personality Traits

Enduring characteristics or qualities that define an individual's patterns of thought, feeling, and behavior.

Between 40 And 60 Percent

A range indicating that an occurrence or characteristic is present in at least forty percent but not more than sixty percent of cases.

Reward Areas

Regions of the brain, such as the nucleus accumbens, involved in the sensation of pleasure and reinforcement of behaviors.

Extraversion

A personality trait characterized by outgoingness, high energy, and engagement in social activities.