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:

Legal System

The comprehensive set of rules and principles, institutions, and processes established by a government or society to enforce laws, provide justice, and regulate conduct within a country or community.

Conduct

How an individual acts, particularly in a professional or public setting.

Code of Conduct

A set of guidelines designed to outline acceptable behaviors and ethical standards for members of an organization or profession.

U.S. Sentencing Commission

An independent agency of the federal judiciary responsible for establishing sentencing policies and practices for the federal courts, including guidelines for corporate crimes.