If a Lump-Sum Income Tax of $25 Billion Is Levied

question 85

Multiple Choice

If a lump-sum income tax of $25 billion is levied and the MPS is .20,the:

• A) saving schedule will shift upward by $5 billion.
• B) consumption schedule will shift downward by $25 billion.
• C) consumption schedule will shift downward by $20 billion.
• D) consumption schedule will shift upward by $25 billion.

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Definitions:

Assimilation

The process by which individuals or groups adopt the culture, norms, and practices of another society, often losing their original identity.

Anomic Suicide

A term coined by Emile Durkheim referring to suicide resulting from insufficient social regulation and individuals feeling disconnected from society.

Connected

Being linked or related, especially in a social, digital, or networking context.

Lack Purpose

A feeling or state wherein individuals or entities see no clear meaning, direction, or worthwhile goal in activities or life in general.