Suppose the MPC Is 0

question 96

Multiple Choice

Suppose the MPC is 0.75, and net taxes decrease by $100 billion.By what amount will the equilibrium level of real GDP increase?  

• A) by $75 billion 
• B) by $100 billion 
• C) by $300 billion 
• D) by $400 billion

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Definitions:

Juvenile Delinquency

The participation in illegal activities by individuals who are under the legal age of adulthood.

Socioeconomic Status

A measure of an individual's or group's economic and social position relative to others, based on income, education, and occupation.

Community Structure

The organization or arrangement of components within a community, including social, economic, and political elements.

Household Chores

Regular tasks and maintenance performed in and around the home to keep it clean, organized, and running smoothly.