An Economy Is Experiencing a High Rate of Inflation

question 67

Multiple Choice

An economy is experiencing a high rate of inflation.The government wants to reduce GDP by $36 billion to reduce inflationary pressure.The MPC is .75.By how much should the government raise taxes to achieve its objective?

• A)$6 billion
• B)$9 billion
• C)$12 billion
• D)$16 billion

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Definitions:

Distributed

Spread over a wide area or among a large number of people or entities.

O Proposition

In traditional logic, a categorical proposition that is universal in quantity and negative in quality, stating that some members of a category do not belong to another category.

Affirmative Singular Proposition

A statement that positively asserts the existence or some characteristic of a single specific subject.

Distributed

A term in logic referring to when all instances of a subject are accounted for in a statement.