If MPC = 5,a Simultaneous Increase in Both Taxes and Government Spending of Government

question 154

Multiple Choice

If MPC = .5,a simultaneous increase in both taxes and government spending of $20 will:

• A) decrease GDP by $20.
• B) decrease GDP by $40.
• C) increase GDP by $20.
• D) increase GDP by $40.

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Definitions:

Death Penalty

A legal punishment where a person is executed by the state as punishment for a crime.

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An individual who engages in a professional relationship with a counselor to explore, address, and resolve psychological, personal, and possibly psychiatric issues.

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Individuals who perceive situations, ideas, and concepts strictly in terms of two opposing categories or perspectives, lacking recognition of nuance or complexity.