If the MPC Is 0

question 15

Multiple Choice

If the MPC is 0.6 and if government purchases and net taxes both increase by $20 billion,by how much will equilibrium output change?

• A) It will increase by $80 billion.
• B) It will increase by $20 billion.
• C) It will not change because the changes in government purchases and net taxes will cancel each other out.
• D) It will decrease by $20 billion.
• E) It will decrease by $80 billion.

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Definitions:

Eating Disorders

Eating disorders are mental health conditions characterized by unhealthy eating habits, such as extreme overeating or undereating, often tied to psychological distress.

Symptom Reductions

The process of lessening the severity or frequency of symptoms of a disorder or illness through therapeutic intervention.

Life Positions

Concepts in transactional analysis referring to fundamental attitudes towards oneself and others, which can affect personal relationships and communication.

Beliefs

The acceptance that something exists or is true, especially without proof.