If a Lump-Sum Tax of $40 Billion Is Levied at Each

question 96

Multiple Choice

If a lump-sum tax of $40 billion is levied at each level of income and the MPC is 0.75, then the saving schedule will shift

• A)upward by $10 billion.
• B)upward by $25 billion.
• C)downward by $10 billion.
• D)downward by $25 billion.

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Definitions:

Temperament

The behavioral characteristics that are fairly well established at birth, such as “easy,” “difficult,” and “slow to warm up”; the enduring characteristics with which each person is born.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their patterns of thought, feelings, and behaviors.

Moral Behavior

Actions that align with societal norms and values regarding what is right and wrong.

Value Judgment

An assessment that reflects personal beliefs or opinions rather than objective truth, often involving a declaration of something being good or bad.