If the MPC in an Economy Is

question 122

Multiple Choice

If the MPC in an economy is .75,a $1 billion increase in taxes will ultimately reduce consumption by:

• A) $1 billion.
• B) $0.75 billion.
• C) $3 billion.
• D) $4 billion.

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Definitions:

Research Procedures

Specific methods and practices used in conducting scientific or scholarly investigation.

Social Influence

The effect that the words, actions, or presence of other people have on our thoughts, feelings, attitudes, or behaviors.

Interpersonal

Pertaining to relationships or communication between people.

Cultural Context

The pattern of physical cues, environmental stimuli, and implicit understanding that convey meaning between members of the same culture.