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:

Chronic Confusion

A long-term or permanent state of confusion often related to dementia, brain injury, or neurological disorders, affecting a person's ability to think clearly and make sense of the world around them.

Dementia

A category of brain diseases resulting in long-term and often gradual decrease in the ability to think and remember, significantly affecting a person's daily functioning.

Tonsillectomy

A surgical procedure to remove the tonsils, often carried out to treat repeated or serious tonsil infections.

Separation Anxiety

Emotional distress seen in many individuals when separated from people or places to which they have a strong emotional attachment.