Assume the Marginal Propensity to Consume (MPC) Is 0

question 132

Multiple Choice

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

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

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Employment Standards Act

Legislation that outlines the minimum standards of employment, including wages, working hours, and conditions, that must be provided to employees by employers.

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