Assume the Marginal Propensity to Consume (MPC) Is 0

question 136

Multiple Choice

Assume the marginal propensity to consume (MPC) is 0.75 and the government cuts taxes by $250 billion. The aggregate demand curve will shift to the:

• A) right by $1,000 billion.
• B) right by $750 billion.
• C) left by $1,000 billion.
• D) left by $750 billion.

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Definitions:

Atherosclerosis

A cardiovascular disease characterized by the buildup of fatty deposits, cholesterol, and other substances on the artery walls, leading to reduced blood flow.

Coronary Heart Disease

A chronic disease that results from a reduction in blood flow from the coronary arteries, which supply the heart with blood.

Myocardial Infarction

A medical condition commonly known as a heart attack, resulting from the blockage of blood flow to the heart muscle.

Atherosclerosis

A condition characterized by the hardening and narrowing of the arteries due to the buildup of plaque, leading to potential heart disease and stroke.