If the Marginal Propensity to Consume (MPC) Is 0

question 156

Multiple Choice

If the marginal propensity to consume (MPC) is 0.75, and if policy makers wish to increase real GDP by $300 million, then by how much would they have to change taxes?

• A) − $300 million.
• B) − $200 million.
• C) − 100 million.
• D) − $50 million.

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Definitions:

Soiled Dressings

Used or contaminated medical dressings that have been removed from a wound or surgical site.

Heat Therapy

A therapeutic technique that applies warmth to parts of the body to alleviate discomfort and promote physical well-being, often used for muscle relaxation and pain relief.

Lower Back Pain

Discomfort or pain localized in the lumbar region of the back, which can result from various factors including injury, aging, or underlying health issues.

Sprained Ankle

An injury to the ligaments around the ankle, usually caused by twisting or turning the ankle in an awkward way.