If the MPC in an Economy Is

question 62

Multiple Choice

If the MPC in an economy is .75,government could shift the aggregate demand curve leftward by $60 billion by:

• A) reducing government expenditures by $12 billion.
• B) reducing government expenditures by $60 billion.
• C) increasing taxes by $15 billion.
• D) increasing taxes by $20 billion.

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Definitions:

Office Furniture

This term covers items such as desks, chairs, and filing cabinets used in an office setting to facilitate work and operations.

Electricity Bill

A monthly bill charged for the consumption of electric energy provided by a utility company to power residential, commercial, or industrial properties.

Purchase

The act of obtaining goods or services in exchange for money, other goods, or services.

Truck

A motor vehicle designed to transport cargo, varying in size, power, and configuration, significant in commercial transportation and logistics.