If the MPC Is Equal to

question 16

Multiple Choice

If the MPC is equal to .75 and net taxes, government spending, investment and net exports are all autonomous, then a $1 billion dollar decrease in net taxes will

• A)have no effect on real GDP
• B)increase real GDP by $1 billion
• C)increase real GDP by $2 billion
• D)increase real GDP by $3 billion
• E)increase real GDP by $4 billion

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Definitions:

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The act of holding someone responsible for a fault or wrong, often resulting in negative feelings or sanctions.

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Performance deficiency occurs when an employee's work output fails to meet the required standards or expectations set by the organization.

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