Assume the MPC Is 0

question 39

Multiple Choice

Assume the MPC is 0.8. If government were to impose $50 billion of new taxes on household income, consumption spending would initially decrease by

• A) $100 billion.
• B) $90 billion.
• C) $40 billion.
• D) $50 billion.

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Definitions:

Maintenance Department

A division within an organization responsible for the upkeep, repair, and smooth running of equipment and facilities.

Floor Space

The total area available for use within a building, often measured in square feet or square meters, important for planning and utilization.

Maintenance Expenses

Costs incurred in the upkeep of property or equipment to ensure its continued functionality and efficiency.

Square Footage

The measurement of area expressed in square feet, commonly used to determine the size of a building or room.