If the Government Wants to Increase Equilibrium by $100 Billion $\times$

question 30

Multiple Choice

If the government wants to increase equilibrium by $100 billion through a change in autonomous net taxes,it could __________ autonomous net taxes by __________.

• A)increase; $100 billion
• B)decrease; $100 billion
• C)decrease; $100 billion \(\times\) MPC/(1 - MPC)
• D)increase; $100 billion \(\times\) MPC/(1 - MPC)
• E)decrease; $100 billion \(\times\) (1 - MPC)/MPC

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Definitions:

Small Changes

Minor modifications or adjustments made to processes, products, or behaviors, often with the intention of improving efficiency, quality, or outcomes.

Company Profit

The financial surplus generated by a company after all operating expenses, including production costs, taxes, and overheads, have been deducted from total revenue.

Fare

A price paid for transportation.

Trade-ins

A sales transaction where a customer exchanges an old item as partial payment for a new one, common in the automotive and electronics industries.