To Eliminate an AD Shortfall of $100 Billion When the Economy

question 34

Multiple Choice

To eliminate an AD shortfall of $100 billion when the economy has an MPC of 0.80,the government should increase transfer payments by

• A)$25 billion.
• B)$100 billion.
• C)$80 billion.
• D)$20 billion.

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Definitions:

Snuggle

To lie or press closely, often for warmth or affection, creating a sense of comfort and intimacy.

Neuroticism

A personality trait characterized by anxiety, fear, moodiness, worry, envy, frustration, jealousy, and loneliness.

Big Five

A theory in psychology that identifies five main personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Emotionally Stable

Refers to individuals who have a consistent emotional state and react to stress and adversity in a calm and rational manner.