If Government Increases Its Tax Revenues by $15 Billion and the MPC

question 10

Multiple Choice

If government increases its tax revenues by $15 billion and the MPC is 2/3,then we can expect the equilibrium GDP to:

• A) decrease by $30 billion.
• B) decrease by $45 billion.
• C) decrease by $35 billion.
• D) decrease by $55 billion.

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Definitions:

Ethnographic Study

In-depth study of a culture, which uses a combination of methods including participant observation.

Culture

A society’s or group’s total way of life, including customs, traditions, beliefs, values, language, and physical products—all learned behavior, passed on from parents to children.

Subculture

describes a group within a larger culture that differentiates itself through distinct beliefs, behaviors, or interests, often having its own norms and values.

Naturalistic Observation

Research method in which behavior is studied in natural settings without intervention or manipulation.