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

question 74

Multiple Choice

In the short-run Keynesian model, if the mpc equals 0.8, then to decrease planned aggregate spending by $30 billion at any output level, government spending must be decreased by ________ or net taxes must be increased by ________.

• A)$30 billion; $30 billion
• B)more than $30 billion; more than $30 billion
• C)less than $30 billion; less than $30 billion
• D)$30 billion; more than $30 billion

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Definitions:

Physical Torture

The use of severe pain or suffering, inflicted upon a person's body, often for purposes of punishment, interrogation, or coercion.

Disfranchising

The act of revoking the right to vote from individuals or groups, often used as a means of political and racial exclusion.

Felony Convictions

Legal judgments that a person has committed a felony, which are serious crimes typically punishable by imprisonment for more than one year or by death.

Nation-building Projects

Efforts by governments or organizations to construct a national identity, infrastructure, government, and economy, particularly after war or conflict.