Assume the Marginal Propensity to Consume (MPC)is 0

question 24

Multiple Choice

Assume the marginal propensity to consume (MPC) is 0.80 and the government cuts taxes by $100 billion. The aggregate demand curve will shift to the:

• A)right by $80 billion.
• B)left by $200 billion.
• C)right by $400 billion.
• D)left by $400 billion.
• E)None of these.

Recognize the significance of sample size and selection techniques in research generalizability.

Acknowledge the influence of culture and sample characteristics on the generalizability of research findings.

Understand the concepts of reliability and validity in research methodology.

Grasp the basic tenets of social psychology and its approach to understanding human behavior.

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