If the Government Decreases Net Autonomous Taxes by $100 Billion

question 6

Multiple Choice

If the government decreases net autonomous taxes by $100 billion and the MPC = 0.75,then equilibrium real GDP demanded will

• A)remain the same
• B)increase by $300 billion
• C)decrease by $300 billion
• D)increase by $400 billion
• E)decrease by $400 billion

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Definitions:

Masculinity

A set of attributes, behaviors, and roles traditionally associated with boys and men, often emphasizing traits such as strength, assertiveness, and leadership.

Cultural Value

A principle or standard that is considered important and upheld by members within a specific cultural group.

Italy

A country located in southern Europe, known for its rich history, culture, art, and culinary traditions, and is a member of the European Union.

Uncertainty Avoidance

A cultural dimension that describes the extent to which a society tolerates ambiguity and uncertainty.