If the MPC in an Economy Is 0

question 95

Multiple Choice

If the MPC in an economy is 0.75, a $1 billion increase in taxes will ultimately reduce consumption by

• A)$1 billion.
• B)$0.75 billion.
• C)$3 billion.
• D)$4 billion.

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Definitions:

Male Counterparts

Refers to men in roles, positions, or situations corresponding to those of women or others for comparison purposes.

Underutilized

Not used to its fullest potential or capacity.

Human Resource

The personnel of an organization or business seen as a significant asset in terms of skills and abilities.

Disabilities

Physical or mental conditions that limit a person's movements, senses, or activities, often requiring accommodations to participate fully in society.