In the Short-Run Keynesian Model, If the Mpc Equals 0

question 143

Multiple Choice

In the short-run Keynesian model, if the mpc equals 0.8, then to increase planned aggregate spending by $20 billion at any output level, government spending must be increased by ________ or net taxes must be decreased by ________.

• A)$20 billion; $20 billion
• B)more than $20 billion; more than $20 billion
• C)less than $20 billion; less than $20 billion
• D)$20 billion; more than $20 billion

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Definitions:

Behavioral Geneticists

Scientists who study the role of genetics in shaping behaviors, traits, and psychology.

Personality Traits

Enduring characteristics that describe an individual's behavior, attitude, and emotional pattern.

Big Five

A theory that identifies five broad dimensions of personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Core Traits

Fundamental personality characteristics that are relatively stable throughout life and define an individual's behavior across different situations.