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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A group of individuals or entities united with a common purpose or function, often working together towards shared goals.

Culture

A society's shared and socially transmitted ideas, values, and perceptions that are used to make sense of experience and generate behavior and are reflected in that behavior.

Reality

The state or quality of being actual, true, or genuine, as opposed to what is imagined, false, or fictitious.

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Regarded with great respect and reverence by a particular religion, culture, or group of people.