If the MPC Is 0

question 6

Multiple Choice

If the MPC is 0.75,a $200 million transfer payment decrease ultimately

• A)Reduces spending by $150 million.
• B)Increases spending by $600 million.
• C)Reduces spending by $600 million.
• D)Increases spending by $150 million.

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Definitions:

Reality Principle

A psychoanalytic concept that represents the ability of the mind to assess the external world and act upon it accordingly, as opposed to acting on the pleasure principle.

Newborn Children

Infants that are in the very first weeks of life, typically characterized by rapid growth and development.

Preconscious

The part of the mind that contains thoughts and feelings that are not currently in conscious awareness but can easily be brought to consciousness.

Unconscious

The part of the mind that houses memories, desires, and feelings not within the immediate awareness of the individual.