If Net Taxes Decrease by $100 Billion and the Result

question 17

Multiple Choice

If net taxes decrease by $100 billion and the result is an increase in GDP of $300 billion,what is the marginal propensity to consume?

• A) 0.75
• B) 3.0
• C) 0.66
• D) 0.50
• E) 0.33

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Definitions:

Elongated

Extended or lengthened in shape or duration.

Cataract

A medical condition in which the lens of the eye becomes progressively opaque, resulting in blurred vision.

Hue

A basic property of color defined by the wavelength of light, denoting the color itself, such as red, blue, or green.

Saturation

The intensity or purity of a color, representing the absence of white light mixed with the hue. High saturation means the color appears more vivid.