Use the Following Situation to Answer the Question : Situation

question 41

Multiple Choice

Use the following Situation to answer the question : situation 20-2 Assume a closed economy. Suppose that autonomous consumption equals $400, planned investment equals $500, government expenditure equals $200, net taxes equals $50, and the mpc equals 0.9.
-Using the information in Situation 20-2,if taxes increase by $10,then the equilibrium aggregate output will change by

• A)-$90.
• B)-$10.
• C)$10.
• D)$90.

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Definitions:

Animals

Refers to multicellular, eukaryotic organisms in the kingdom Animalia that typically have the ability to move and consume organic material.

Marginal Analysis

An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity.

Insignificant Benefits

Benefits or advantages that are too small or unimportant to make a noticeable difference.

Opportunity Costs

The advantages or gains a person, investor, or company forgoes by selecting one option instead of another.