If a Lump-Sum Tax of $40 Billion Is Imposed and the MPC

question 112

Multiple Choice

If a lump-sum tax of $40 billion is imposed and the MPC is 0.6, the saving schedule will:

• A)shift downward by $24 billion.
• B)shift upward by $24 billion.
• C)shift downward by $16 billion.
• D)shift upward by $16 billion.

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Definitions:

Negative Reinforcement

A process in learning whereby the likelihood of a behavior is increased by removing or avoiding a negative outcome or stimuli.

Secondary Learning

Learning that builds on previously acquired knowledge, skills, or understanding, often involving the application of basic concepts to new situations.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed, leading to the belief that one's actions have no effect on outcomes.

Aversive Stimulus

A stimulus that is unpleasant or painful, which an organism seeks to avoid or escape.