If the MPC Were

question 12

Multiple Choice

If the MPC were .5,what change in government spending (in billions of dollars) would be required to cause the equilibrium level of GDP to rise by 100?

• A)An increase of 20.
• B)An increase of 50.
• C)An increase of 100.
• D)An increase of 200.
• E)An increase of 250.

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Definitions:

Owns

To possess or have title to a property or asset.

Subchapter S Stock

Shares of a corporation that elects to pass corporate income, losses, deductions, and credits to shareholders for federal tax purposes.

Corporate Charitable Contributions

Contributions made by a corporation to charitable organizations which are often tax-deductible.

Corporate Formation

Corporate formation refers to the legal process involved in creating a corporate entity or company, which includes filing the necessary documents with state authorities and fulfilling all legal requirements to start business operations.