If the MPC for an Economy Is 0

question 93

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:

Core-Mantle Boundary

The distinct boundary between the Earth's solid silicate mantle and its liquid iron-nickel outer core, located approximately 2,900 kilometers below the Earth's surface.

Material Rises

The upward movement of substances due to thermal buoyancy, tectonic forces, or other mechanisms within the Earth's mantle or crust, or in atmospheric or aquatic contexts.

Interior Earth

The inner part of the Earth, consisting of the crust, mantle, and core, each with distinct geophysical and geochemical properties.

High Temperature

A condition of heat that is significantly above the average and affects physical, chemical, or biological processes in a specific context.