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

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Definitions:

Language

A system of symbols and rules used for communication and thought among individuals within a community.

Propositional Representation

A form of knowledge representation in the mind that symbols can stand for objects, and their arrangement can represent the relationship between these objects.

Pragmatics

The branch of linguistics concerned with the use of language in social contexts, focusing on the meanings that are conveyed by considering the context of the utterance.

Nativism

Nativism is the philosophical viewpoint that certain skills or abilities are native or hardwired into the brain at birth, contrasting with the idea that knowledge is primarily acquired through experience.