G Suppose that there are NO taxes or imports. If the marginal propensity to consume is 0.75, a(n) in autonomous spending will result in a $20 billion increase in equilibrium Real GDP. A. $5 billon decrease B. $20 billon increase C. $80 billon decrease D. $5 billon increase E. $80 billon increase

$5 billion

Explanation:

The marginal propensity to consume shows the ratio of how much increases in consumption when disposable income increases. Disposable income is the income after all cut(like tax). If the MPC is 0.75 mean that every 1$ of increase in income, someone will spend $0.75 and save $0.25. That $0.75 will be spent on someone and increase their income too. So, an increase in autonomous spending will cause an increase in income. This positive feedback will keep happening so that the actual increase is higher and called investment multiplier. The multiplier in this question is :  

multiplier = 1/ (1-MPC)

multiplier= 1/0.25

multiplier=  4

Since the multiplier is 4, the increase from income that results as a $20 billion increase in GDP will be:

GDP increase = multiplier * autonomous spending increase

$20 billion = 4 * autonomous spending increase

autonomous spending increase= $20 billion / 4

autonomous spending increase= $5 billion

i believe that it is a 45% chance.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know