Assume the MPC Is 0

question 142

Multiple Choice

Assume the MPC is 0.80.If the government wants to eliminate an AD shortfall of $300 billion,it should

• A)Cut taxes by $75 billion.
• B)Cut taxes by $240 billion.
• C)Increase taxes by $60 billion.
• D)Cut taxes by $60 billion.

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Definitions:

Brand Identity

Brand identity is the collection of all elements that a company creates to portray the right image to its consumer, including visuals, messaging, and experience.

Consumer Confusion

A state where consumers are uncertain or have difficulty understanding or distinguishing between products, brands, or services.

Theoretical Influence

The impact that established theories or principles have on shaping research, practices, or policies within academic, scientific, or professional fields.

Psychological Influence

The impact that psychological factors, such as emotions, beliefs, or cognitive biases, have on an individual’s decisions and behaviors.