In the Keynesian-Cross Model, If the MPC Equals 0

question 49

Multiple Choice

In the Keynesian-cross model, if the MPC equals 0.75, then a $1 billion increase in government spending increases planned expenditures by ______ and increases the equilibrium level of income by ______.

• A) $1 billion; more than $1 billion
• B) $0.75 billion; more than $0.75 billion
• C) $0.75 billion; $0.75 billion
• D) $1 billion; $1 billion

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Definitions:

Gender Ideology

Gender ideology encompasses the beliefs and norms surrounding the roles, behaviors, and identities considered appropriate for men and women in a society.

Socialize

The method by which people assimilate and embrace the standards, morals, and actions considered acceptable within their community or social circle.

Social Consequences

The outcomes or effects that an action or event has on the social fabric and interactions within a community.

Interact

To act in response to something, often referring to the action or influence of objects or people on each other.