If the Marginal Propensity to Consume (MPC) Is 0

question 156

Multiple Choice

If the marginal propensity to consume (MPC) is 0.75, and if policy makers wish to increase real GDP by $300 million, then by how much would they have to change taxes?

• A) − $300 million.
• B) − $200 million.
• C) − 100 million.
• D) − $50 million.

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Definitions:

Cognitive Therapy Techniques

Strategies used in psychotherapy to change negative patterns of thinking to improve mood and behavior.

Born Loser

A derogatory term suggesting an individual who is habitually unsuccessful or unlucky, often used to imply that failure is an intrinsic part of one's character rather than due to external circumstances.

Aversive Conditioning

A form of treatment that consists of repeated pairings of a stimulus with a very unpleasant stimulus.

Smoking-Cessation Program

Structured plans or interventions aimed at assisting individuals in quitting the habit of smoking tobacco.