If the MPC Is 0

question 14

Multiple Choice

If the MPC is 0.9 and the tax rate is 15%,a $100 increase in autonomous investment will increase equilibrium income by

• A) $131.
• B) $426.
• C) $599.
• D) $850.

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Definitions:

Fear

An emotional response to a perceived threat, which serves as a basic survival mechanism by triggering the fight or flight response.

Generalization

The process by which the brain applies learned information from specific instances to similar situations or stimuli.

Punished Behaviors

Behaviors that have been discouraged or corrected through negative consequences or punishments.

Hazardous

Something that poses a risk or danger, potentially causing harm or adverse effects.