If the MPC for an Economy Is 0

question 147

Multiple Choice

If the MPC for an economy is 0.90,a $4 billion increase in taxes will ultimately cause consumption to decrease by

• A)$40 billion.
• B)$36 billion.
• C)$4.4 billion.
• D)$3.6 billion.

---

Definitions:

Corpus Callosum

A broad band of nerve fibers joining the two hemispheres of the brain, facilitating communication and coordination between them.

Phineas Gage

An individual famously studied in neuroscience whose personality changes after a traumatic brain injury helped advance understanding of brain function.

Motor Cortex

An area of the cerebral cortex responsible for devising, managing, and carrying out voluntary muscle movements.

Movement

The act or process of moving or being moved, encompassing physical and symbolic motion.