If a $10 Billion Decrease in Lump-Sum Taxes Increases Equilibrium

question 54

Multiple Choice

If a $10 billion decrease in lump-sum taxes increases equilibrium GDP by $40 billion,then:

• A) the multiplier is 4.
• B) the MPC for this economy is .8.
• C) the MPC for this economy is .6.
• D) the multiplier is 3.

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Definitions:

Bad Barrels

A metaphor suggesting that an unethical organizational culture can corrupt individuals within it, not just bad individuals corrupting the organization.

Unethical Decisions

Choices made that violate moral or ethical standards, often prioritizing personal gain over principles of integrity.

Successful Ethics Training

A program or initiative that effectively educates individuals or employees about ethical behavior and decision-making, fostering a culture of integrity.