If the MPC Is 0

question 111

Multiple Choice

If the MPC is 0.75 and there are no crowding-out or accelerator effects, an initial increase in AD of $100 billion will eventually shift the AD curve to the right by how much?

• A) $40 billion
• B) $133.33 billion
• C) $250 billion
• D) $400 billion

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Definitions:

RULLCA

Revised Uniform Limited Liability Company Act; a standard law adopted by some states to govern the formation, operation, and dissolution of LLCs.

RULLCA

The Revised Uniform Limited Liability Company Act, which provides a comprehensive model act for the formation, operation, and dissolution of LLCs in the United States.

Default Rules

Default rules are legally established standards that apply when parties to a contract do not stipulate their own arrangements or when such arrangements are not legally enforceable.

LLC

Stands for Limited Liability Company, a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.