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:

Cognitive-Behavioral Therapy

A type of psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors to treat various mental disorders.

Existential Therapy

A therapy that encourages clients to accept responsibility for their lives and to live with greater meaning and value.

Humanistic Therapy

A system of therapy in which clinicians try to help clients look at themselves accurately and acceptingly so that they can fulfill their positive inborn potential.

Psychodynamic Therapy

is a form of depth psychology, the primary focus of which is to reveal the unconscious content of a client's psyche in an effort to alleviate psychic tension.