If the MPC Is 0

question 2

True/False

If the MPC is 0.9, a $20 billion increase in a lump-sum tax will reduce GDP by $200 billion.

---

Definitions:

Electroconvulsive Therapy

Electroconvulsive therapy is a medical treatment most commonly used for severe depression, involving the induction of a controlled seizure in the patient through electrical currents.

Severe Depression

A major depressive disorder characterized by intense and persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in most activities.

Bipolar Disorder

A mental condition marked by extreme mood swings, including periods of mania and depression.

Schizophrenia

A chronic and severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.