If the MPC =

question 7

Multiple Choice

If the MPC = .8, what is the tax multiplier according to the aggregate expenditures model?

• A) -2
• B) -3
• C) -4
• D) -5

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Definitions:

Obedience

Obedience is the act of following orders or instructions, often from an authority figure, without questioning.

Confederate

An individual in a study who is secretly working with the researchers, often used in psychological experiments to manipulate social interactions without the other participants’ knowledge.

Authority Figure

An individual who holds power or influence over others, often in a hierarchical organization or society.

Stanley Milgram

A psychologist best known for his landmark experiment on obedience to authority figures, conducted in the 1960s, demonstrating how ordinary people can commit unthinkable actions under pressure.