Suppose Both Autonomous Taxes and Transfer Payments Increase by $50

question 22

Multiple Choice

Suppose both autonomous taxes and transfer payments increase by $50 billion.If the MPC = 0.75,by how much does equilibrium real GDP demanded change?

• A)$0
• B)$50 billion
• C)-$50 billion
• D)$200 billion
• E)-$200 billion

---

Definitions:

Divisional Assets

Resources and property allocated to a specific division within a larger organization, instrumental in generating revenue.

Responsibility Center

A business segment or department within an organization whose manager is accountable for specific financial and operational outcomes.

Investment Center

A business segment within a company for which the manager is responsible for generating revenue and controlling costs, with the ability to make significant investment decisions.

Department Manager

An individual responsible for overseeing a specific department within a company, ensuring its efficient operation and alignment with the organization's goals.