If the MPC Is 0

question 125

Multiple Choice

If the MPC is 0.9, and the government cuts spending by $200b, the overall effect on GDP will be:

• A) a decrease of $2,000b.
• B) an increase of $2,000b.
• C) a decrease of $1,800b.
• D) an increase of $180b.

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Definitions:

Oksapmin Children

Refers to children of the Oksapmin society in Papua New Guinea, often studied for their unique counting and numeric comprehension skills.

Counting System

A method or set of rules used for quantifying objects, typically involving numbers and operational symbols.

Body Parts

Structures that make up the anatomy of living organisms, including humans and animals.

Miller's Study

A significant psychological research conducted by George A. Miller in 1956, focusing on the limits of our capacity for processing information, notably finding that humans can hold about 7 (plus or minus 2) items in their working memory.