If the MPC Equals 0

question 77

Multiple Choice

If the MPC equals 0.75,a $100 billion transfer payment decrease will decrease consumption in the first round by

• A)$25 billion.
• B)$75 billion.
• C)$100 billion.
• D)$400 billion.

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Definitions:

Rogers

Carl Rogers was a prominent psychologist who founded person-centered therapy, emphasizing the importance of an empathetic and non-judgmental therapeutic environment for personal growth.

Concept

An abstract idea or a mental symbol used to understand or categorize the world.

Functional Autonomy

A principle in psychology proposed by Gordon Allport, suggesting that motives in the mature adult become independent of their origins.

Propriate Autonomy

A concept in psychology that refers to the development of an independent self, capable of making its own decisions and regulating its own behavior.