Assume the MPC Is 0

question 35

Multiple Choice

Assume the MPC is 0.75.To eliminate an AD shortfall of $200 billion,the government should

• A)Decrease spending by $50 billion.
• B)Increase spending by $50 billion.
• C)Increase taxes by $66.7 billion.
• D)Increase spending by $800 billion.

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Definitions:

Phenylketonuria

A genetic disorder caused by a deficiency in the enzyme needed to metabolize phenylalanine, leading to intellectual disability and other health issues if untreated.

Intellectual disability

A condition characterized by significant limitations in both intellectual functioning and in adaptive behavior, originating before the age of 18.

Myelin

A fatty substance that surrounds and insulates nerve fibers, speeding up the transmission of electrical signals in the nervous system.

Fibrous tissue

A type of connective tissue that is made up of densely packed collagen fibers, providing structural support and strength to various body structures and organs.