Suppose the MPC Is 0

question 55

Multiple Choice

Suppose the MPC is 0.60.Assume there are no crowding out or investment accelerator effects.If the government increases expenditures by $200 billion,then by how much does aggregate demand shift to the right? If the government decreases taxes by $200 billion,then by how much does aggregate demand shift to the right?

• A)$300 billion and $180 billion
• B)$300 billion and $300 billion
• C)$500 billion and $300 billion
• D)$500 billion and $500 billion

---

Definitions:

Affirmative Action

Policies and practices aimed at increasing opportunities for historically disadvantaged groups by taking specific measures to ensure they are represented in education, employment, and other areas.

Diversity Leadership

Leadership that acknowledges, values, and leverages differences in individuals and groups to achieve organizational goals and foster an inclusive environment.

Upward Mobility

The ability or opportunity for individuals to improve their economic status or social class, often through education or career advancements.

Leaking Pipeline Problem

The phenomenon where glass ceilings and other obstacles cause qualified and high-performing women to drop out of upward career paths.