If the MPC = 3/4, What Is the Government Purchases

question 10

Multiple Choice

If the MPC = 3/4, what is the government purchases multiplier?

• A) 1/4
• B) 3/4
• C) 4/3
• D) 4

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Definitions:

Achieve Equity

The process or aim of ensuring fairness and justice within the allocation of resources, responsibilities, and opportunities among members of a community or organization.

Perceived Fairness

An individual's belief or perception regarding the equity or justice of a situation, process, or decision.

Social Comparison

The process of evaluating oneself in relation to others, which can influence self-esteem, motivation, and social behaviors.

Equity Theory

A theory in social psychology that posits individuals assess their job satisfaction based on the ratio of inputs to outcomes compared to others, seeking fairness in exchanges.