In the Short-Run Keynesian Model, If the Mpc Equals 0

question 143

Multiple Choice

In the short-run Keynesian model, if the mpc equals 0.8, then to increase planned aggregate spending by $20 billion at any output level, government spending must be increased by ________ or net taxes must be decreased by ________.

• A)$20 billion; $20 billion
• B)more than $20 billion; more than $20 billion
• C)less than $20 billion; less than $20 billion
• D)$20 billion; more than $20 billion

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Definitions:

Job Descriptions

Formal documents that outline the duties, responsibilities, required qualifications, and reporting relationships of a particular job.

Superordinate Powers

Refers to superior authority or power, often in the context of a hierarchical structure where certain entities have overarching control over others.

Interpersonal Commitment

A psychological and emotional agreement between individuals to support and be loyal to one another.

Individualists

People who prioritize personal goals and independence over group objectives, often valuing individual freedom and self-expression.