In 1963, Government Economists Assumed That the MPC for the United

question 122

Multiple Choice

In 1963, government economists assumed that the MPC for the United States was approximately 0.90.If taxes were cut by $9 billion, then consumer expenditures would initially be expected to

• A)decrease by $9.0 billion.
• B)increase by $9.0 billion.
• C)decrease by $8.1 billion.
• D)increase by $8.1 billion.

---

Definitions:

Merger

In corporation law, traditionally, a transaction by which one corporation acquires another corporation, with the acquiring corporation being owned by the shareholders of both corporations and the acquired corporation going out of existence. Today, loosely applied to any negotiated acquisition of one corporation by another.

Remains Liable

Continues to be legally responsible or obligated.

Debt

An amount of money that is owed or due to be paid, typically as a result of borrowing or a financial agreement.

Minutes

The official written records of the discussions and decisions made during formal meetings.