If the Mpc Is 0

question 67

Multiple Choice

If the mpc is 0.75, and government spending and taxes both rise by $100, then equilibrium output

• A) falls by $100.
• B) falls by $25.
• C) rises by $25.
• D) rises by $100.

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Definitions:

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, which explored obedience to authority figures by having participants administer what they believed were electric shocks to another person.

Crowd Formation

The process by which individuals come together to form a large group, often in response to an event, interest, or common goal.

Deindividuation

A psychological state where an individual loses self-awareness and personal accountability in groups, often leading to uncharacteristic behavior.

Zimbardo

Refers to Philip Zimbardo, a psychologist known for conducting the Stanford Prison Experiment, which explored the effects of perceived power and authority on behavior.