If the MPC in an Economy Is 0

question 36

Multiple Choice

If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by

• A) reducing government expenditures by $12 billion.
• B) reducing government expenditures by $60 billion.
• C) increasing taxes by $15 billion.
• D) increasing taxes by $20 billion.

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Definitions:

External Validity

The degree to which the findings of a research can be applied to different settings and different individuals.

Independent Variables

Variables in an experiment that are manipulated or changed by researchers to observe their effects on dependent variables.

Dependent Variable

In experimental research, it's the variable that is being tested and measured.

MMPI Validity Scales

Measures within the Minnesota Multiphasic Personality Inventory designed to assess the test taker’s approach to the test, such as their truthfulness, consistency, and engagement.