If the Marginal Propensity to Consume Is 5/6, and There

question 204

Multiple Choice

If the marginal propensity to consume is 5/6, and there is no investment accelerator or crowding out, a $20 billion increase in government expenditures would shift the aggregate demand curve right by

• A)$60 billion, but the effect would be larger if there were an investment accelerator.
• B)$60 billion, but the effect would be smaller if there were an investment accelerator.
• C)$120 billion, but the effect would be larger if there were an investment accelerator.
• D)$120 billion, but the effect would be smaller if there were an investment accelerator.

Discern the thesis statement within an essay's structure.

Interpret the overarching themes and messages conveyed through narrative essays.

Understand basic probability models and how to calculate probabilities.

Learn to create probability models for various scenarios.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government.

Taxpayer

An individual or entity that is obligated to pay taxes to a federal, state, or local government.

Income

The financial amount earned from work (wages), capital (investments), or other revenue streams during a specific time frame.

Cafeteria Plans

Employee benefit plans that allow workers to choose from a variety of pre-tax benefits, including health insurance, retirement contributions, and flexible spending accounts.