Jack Has an MPC of 0

question 52

Multiple Choice

Jack has an MPC of 0.82 and Jill has an MPC of 0.78.Ceteris paribus,if the government transfers income from people who behave like Jack to people who behave like Jill,

• A)It is not possible to predict what will happen to aggregate demand.
• B)Aggregate demand will increase.
• C)Aggregate demand will remain the same.
• D)Aggregate demand will decrease.

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Definitions:

Shield Laws

Legal provisions that protect reporters from being compelled to disclose confidential information or sources in state courts.

Libel and Slander

False statements that are damaging to a person's reputation, with libel being written or published and slander being spoken.

Selective Incorporation

The legal doctrine by which certain rights and freedoms guaranteed by the Bill of Rights are applied to the states through the Fourteenth Amendment's Due Process Clause.

Fourteenth Amendment

An amendment to the U.S. Constitution, adopted in 1868, that grants citizenship to all persons born or naturalized in the United States, including former slaves, and guarantees all citizens equal protection of the laws.