Assume Autonomous Net Taxes Fall by $300, and the MPC

question 78

Multiple Choice

Assume autonomous net taxes fall by $300, and the MPC equals 2/3.Net exports, planned investment, taxes, and government purchases are autonomous and remain fixed.What is the value of the spending multiplier?  

• A) 0 
• B) 1 
• C) 3 
• D) 10

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Definitions:

Timing Cycle

A Timing Cycle refers to the duration or sequence of events or operations in a process, typically measured or controlled in timing applications.

ControlLogix Controllers

A line of industrial controllers from Allen-Bradley that offer advanced features for process, motion, and discrete control applications, providing integrated safety, information, and communication.

Time Base

The reference timing interval used by timers, dictating how the timer increments or decrements time counts.

Retentive On-relay Timer

A timer that retains its accumulated value even when the control power is interrupted, resuming its timing function once power is restored.