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.

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Definitions:

Presbyopia

A condition associated with aging in which the eye exhibits a progressively diminished ability to focus on near objects.

Myopia

A condition that occurs when light entering the eye is focused in front of the retina; commonly called nearsightedness.

Glaucoma

A condition in which too much pressure is created in the eye by excessive aqueous humor. This excess pressure can lead to permanent damage of the optic nerves, resulting in blindness.

Cataracts

Cloudy areas that form in the lens of the eye that prevent light from reaching visual receptors.