According to the Keynesian-Cross Analysis, If MPC Stands for Marginal

question 20

Multiple Choice

According to the Keynesian-cross analysis, if MPC stands for marginal propensity to consume, then a rise in taxes of ΔT will:

• A)decrease equilibrium income by ΔT.
• B)decrease equilibrium income by ΔT / (1 - MPC).
• C)decrease equilibrium income by ΔT (MPC) / (1 - MPC).
• D)not affect equilibrium income at all.

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Definitions:

Pathologizes

The process of viewing or treating behaviors and psychological experiences as indicative of disease or dysfunction.

Prevalence

The proportion of a population that is affected by a certain condition, disease, or characteristic at a specific time.

Psychological Disorders

Mental health conditions characterized by significant disturbances in thoughts, feelings, or behaviors.

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