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:

Positive Psychology Coaching

A coaching approach that focuses on leveraging strengths and fostering well-being to achieve personal and professional development.

Life Strategies Coaching

A guidance process aimed at helping individuals identify their goals, challenges, and potentials to develop plans for personal or professional growth.

Behavioral Retraining

A process of teaching new responses to replace undesirable behaviors in order to improve psychological well-being or enhance social skills.

Flexible/Rigid

A characteristic describing the adaptability and openness to change (flexible) versus resistance to change and strict adherence to rules without compromise (rigid).