Assume There Is No Government or Foreign Sector

question 325

Multiple Choice

Assume there is no government or foreign sector. If the MPS is 0.2, a $40 billion decrease in planned investment will cause aggregate output to decrease by

• A) $20 billion.
• B) $50 billion.
• C) $80 billion.
• D) $200 billion.

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Definitions:

Imprisonment

Imprisonment refers to the act of confining someone in a prison as a punishment for a crime they have been convicted of.

Driving Under the Influence

The crime or offense of operating a vehicle while impaired by alcohol or other drugs to a level that renders the driver incapable of operating a vehicle safely.

Felony

A crime—such as arson, murder, rape, or robbery—that carries the most severe sanctions, usually ranging from one year in a state or federal prison to the forfeiture of one’s life.

Imprisonment

The state of being confined in jail or prison as a legal punishment for crimes committed.