If the Marginal Propensity to Consume (MPC) Is 0

question 56

Multiple Choice

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

• A)  -$30 million
• B)  -$50 million
• C) -100 million
• D) -300 million

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Definitions:

Intimidating Older

Eliciting fear or deference through the combined effect of age, experience, and often physical or social presence.

Irritating Younger

A colloquial term possibly pointing to the annoyance caused by younger individuals, though it lacks specificity as a key term.

Playful Younger

Often characterized by lighthearted and sometimes immature behavior typical of younger individuals, especially in contexts that allow for exploration and creativity.

Subjective Well-Being

An individual's self-assessment of their own happiness and satisfaction with life, encompassing emotional reactions and cognitive judgments.