If the MPC Equals 0

question 65

Multiple Choice

If the MPC equals 0.75,$100 billion tax increase will decrease consumption in the first round by

• A)$100 billion.
• B)$300 billion.
• C)$400 billion.
• D)$75 billion.

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Definitions:

Reward

A benefit, recognition, or compensation given to an individual or group as a return for their performance, achievement, or service.

Coercive

Relating to or using force or threats to persuade someone to do something or comply with one's demands.

Expert

A person who possesses a high level of knowledge, skills, or expertise in a particular field or area.

Referent

The entity to which a word or phrase refers or relates.