Assume the Marginal Propensity to Consume (MPC) Is 0

question 136

Multiple Choice

Assume the marginal propensity to consume (MPC) is 0.75 and the government cuts taxes by $250 billion. The aggregate demand curve will shift to the:

• A) right by $1,000 billion.
• B) right by $750 billion.
• C) left by $1,000 billion.
• D) left by $750 billion.

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Definitions:

Conflict

A struggle or clash between opposing forces or ideas, which can occur on an interpersonal, group, or international level.

Successful Stepfamilies

Blended families that manage to navigate the challenges of bringing together parents and children from previous marriages successfully.

Couple Relationship

A romantic or sexual relationship between two people.

Rewards

Benefits or positive feedback given for a specific behavior, encouraging repetition of such behavior.