If APC = 6 and MPC =

question 13

Multiple Choice

If APC = .6 and MPC = .7, the immediate impact of an increase in personal taxes of $20 will be to:

• A)have no effect on consumption.
• B)decrease consumption by $14.
• C)decrease consumption by $12.
• D)increase consumption by $14.

---

Definitions:

Collaboration

The process of two or more people, organizations, or entities working together to complete a task or achieve a goal.

Organizational Cultures

The collection of values, expectations, and practices that guide and inform the actions of all team members within an organization.

Strategic Alliances

Agreements between businesses to pursue shared objectives while remaining independent organizations.

La Piana Consulting

A consulting firm specializing in strategic solutions for nonprofits and foundations.