If an Economy's MPC Is 0

question 23

Multiple Choice

If an economy's MPC is 0.95 and the MPM is 0.05, then an increase in government spending of $1,000 will increase income by

• A) $900.
• B) $4,500.
• C) $10,000.
• D) $20,000.

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Definitions:

Asian Americans

A group of Americans of Asian descent, representing diverse cultures, languages, and histories from the Asian continent.

Current Smokers

Individuals who are actively smoking tobacco products at the present time, facing increased health risks.

Self-Esteem

The subjective assessment of one's own worth or value as reflected in the judgments and attitudes held toward oneself.

Adolescents

Individuals in the developmental stage of transition from childhood to adulthood, typically including ages 13 through 19.