If There Are No Taxes or Imports and MPC =

question 113

Multiple Choice

If there are no taxes or imports and MPC = 0.67, the multiplier is

• A) 1.5.
• B) 3.
• C) 6.
• D) 0.33.

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Definitions:

Diffusion of Responsibility

A phenomenon where individuals in a group are less likely to take action or feel accountable for actions because the responsibility is seen as being distributed among all members of the group.

Riskier Decisions

Choices or actions taken that involve a higher level of uncertainty and potential for negative outcomes compared to alternative options.

Group Members

Individuals who belong to a specific group or team, sharing common goals, tasks, or interests.

Groupthink

A phenomenon where the desire for harmony or conformity within a group results in an irrational or dysfunctional decision-making outcome.