Suppose the MPC Is 0

question 297

Multiple Choice

Suppose the MPC is 0.75.There are no crowding out or investment accelerator effects.If the government increases its expenditures by $200 billion,then by how much does aggregate demand shift to the right? If the government decreases taxes by $200 billion,then by how far does aggregate demand shift to the right?

• A) $800 billion and $800 billion
• B) $800 billion and $600 billion
• C) $600 billion and $600 billion
• D) $600 billion and $450 billion

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Definitions:

Role Ambiguities

Situations where roles and responsibilities are unclear, often leading to confusion and inefficiency in organizational settings.

Emotional Antagonism

A state or feeling of opposition, hostility, or animosity that is rooted in emotions, rather than rational arguments or disagreements.

Substance

The essential material or content of something, as opposed to its form or appearance.

Emotional Conflict

A state of tension that arises from incompatible emotion or desires within an individual.