If the MPC Is 0

question 81

Multiple Choice

If the MPC is 0.75,and the government cuts taxes by $100b,the overall effect on GDP will be:

• A)a decrease of $400b.
• B)an increase of $300b.
• C)a decrease of $300b.
• D)an increase of $400b.

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Definitions:

Policy Of Appeasement

A diplomatic strategy aimed at avoiding conflict by making concessions to an aggressor.

Conflict Like World War I

A large-scale, global conflict involving many nations and resulting in significant political change and loss of life, similar to the one that occurred from 1914 to 1918.

Franklin Roosevelt

The 32nd President of the United States, serving four terms from 1933 to 1945, he is known for leading the U.S. during the Great Depression and World War II, and for his New Deal policies.

Actions Toward Germany

could refer to various policies or measures taken by different countries or entities against Germany, particularly in the context of both World Wars or economic relations.