If the Marginal Propensity to Consume (MPC) Is 0

question 13

Multiple Choice

If the marginal propensity to consume (MPC) is 0.8 and the parliament votes for a $100 million tax cut. What is the change in aggregate demand?

• A) $250 million.
• B) $200 million.
• C) $100 million.
• D) $80 million.

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Definitions:

Writing About Leadership

The act of analyzing, discussing, or providing guidance on the qualities, processes, and outcomes related to leading individuals or organizations.

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The systematic study and exploration of various theories, styles, and practices associated with leading individuals or groups in different contexts.

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Disciplines that study societies and the relationships among individuals within those societies.

Smoothie Shop

A retail business that specializes in preparing and selling blended fruit drinks, often with additional ingredients for health benefits.