If the MPC Is 0

question 56

Multiple Choice

If the MPC is 0.8 and net taxes increase by $100 billion,what is the effect on equilibrium output?

• A) There is no effect;equilibrium output is not affected by a change in net taxes.
• B) Equilibrium output will fall by $80 billion.
• C) Equilibrium output will fall by $125 billion.
• D) Equilibrium output will fall by $400 billion.
• E) Equilibrium output will fall by $500 billion.

---

Definitions:

Government In The Sunshine Act

A U.S. law that requires meetings of agencies or governing bodies to be open to the public, promoting transparency and accountability.

Securities And Exchange Commission

A U.S. federal agency responsible for enforcing the federal securities laws, regulating the securities industry, and protecting investors.

Freedom Of Information Act

A law ensuring public access to records from any federal agency, promoting transparency and accountability in government operations.

Denial Of Access

The refusal or prevention of authorized entry to a facility, system, or resource, which can result from legal actions, security measures, or technical issues.