Within the Simple Keynesian Model with Lump-Sum Taxes,if the MPC

question 52

Multiple Choice

Within the simple Keynesian model with lump-sum taxes,if the MPC (b) were 0.75 then if taxes rise by $200 then income

• A)rises by $800
• B)falls by $200 .
• C)falls by $800.
• D)rises by $200.
• E)Falls by $800.

---

Definitions:

Nonrelatives

Individuals who are not family members or related by blood.

Neuronal Firing

The process by which neurons send electrical signals to communicate with other neurons or muscles.

GABA

A neurotransmitter in the brain that plays a key role in regulating nerve cell activity and is involved in reducing excitability and promoting relaxation.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.