Suppose the President Is Successful in Passing a $5 Billion

question 57

Multiple Choice

Suppose the president is successful in passing a $5 billion tax increase.Assume that taxes are fixed,the economy is closed,and the marginal propensity to consume is 0.75.What happens to equilibrium GDP?

• A)There is a $20 billion increase in equilibrium GDP.
• B)There is a $20 billion decrease in equilibrium GDP.
• C)There is a $15 billion increase in equilibrium GDP.
• D)There is a $15 billion decrease in equilibrium GDP.

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Definitions:

Business Selling

The activity of selling products or services directly to other businesses rather than individual consumers.

Approach Step

A preliminary phase in a sales process or project methodology where strategies are determined.

Customer Profile

A detailed description of a business's typical customers, including demographics, behaviors, and preferences.

Building Rapport

The process of establishing a mutual trust, understanding, and good communication with someone, often used in the context of sales and negotiation.