If the MPC for an Economy Is 0

question 147

Multiple Choice

If the MPC for an economy is 0.90,a $4 billion increase in taxes will ultimately cause consumption to decrease by

• A)$40 billion.
• B)$36 billion.
• C)$4.4 billion.
• D)$3.6 billion.

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Definitions:

Intragroup

Refers to interactions and processes that occur within a single group, including cooperation, conflict, and social cohesion.

Intergroup

Pertaining to or involving relations between different groups, especially within a social, cultural, or organizational context.

Role

The function or part played by a person or thing in a particular situation or context.

Interconnected Tasks

Tasks that are linked or related in such a way that the completion of one can affect the execution of others.