If the MPS in an Economy Is 0

question 27

Multiple Choice

If the MPS in an economy is 0.1, government could shift the aggregate demand curve rightward by $40 billion by

• A) increasing government spending by $4 billion.
• B) increasing government spending by $40 billion.
• C) decreasing taxes by $4 billion.
• D) increasing taxes by $4 billion.

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Definitions:

Cultural-Familial Retardation

A concept referring to intellectual disability that may result from environmental factors and may not have a clear genetic or biological cause.

Organic Retardation

Organic retardation refers to cognitive impairments resulting from physical damage to the brain or disruption in its development.

Vitamin-Deficiency Retardation

Impaired physical or mental development resulting from a lack of essential vitamins in the diet.

Sternberg's Triarchic Theory

A theory of intelligence proposing that human intelligence comprises three aspects: analytical, creative, and practical intelligence.