If Spending Increased by $250, and the GDP Decreased $1,000

question 89

Multiple Choice

If spending increased by $250, and the GDP decreased $1,000 as a result, the MPC must be:

• A) −0.75
• B) 0.75
• C) −4
• D) 2

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Definitions:

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.

Mediates

To intervene between parties with the aim of resolving differences or to bring about a change through such an intervention.

Iceberg

Often used as a metaphor in psychology to describe the mind's structure: the conscious mind as the tip of the iceberg and the unconscious mind as the much larger part beneath the surface.

Freud

The founder of psychoanalysis, an Austrian neurologist known as Sigmund Freud, introduced a therapeutic method that involves dialogues between psychoanalysts and patients to treat psychopathology.