If the MPC in an Economy Is

question 113

Multiple Choice

If the MPC in an economy is .8, government could shift the aggregate demand curve rightward by $100 billion at each price level by:

• A)increasing government spending by $25 billion.
• B)increasing government spending by $80 billion.
• C)decreasing taxes by $25 billion.
• D)decreasing taxes by $100 billion.

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Definitions:

Postage Stamps

Adhesive paper evidence for payment of postage, used to indicate that the postage fee for sending an item through the postal service has been paid.

Accountant

A professional who manages, audits, and analyzes financial records and transactions for individuals, businesses, and organizations.

Ledger

A-book or digital record that summarizes and categorizes all financial transactions of a business during an accounting period.

Normal Debit Balance

The expected balance type of an account based on conventional accounting rules; assets and expenses usually have a normal debit balance.