In the Basic Keynesian Model Where the Marginal Propensity to Consume

question 178

Multiple Choice

In the basic Keynesian model where the marginal propensity to consume is 0.5,taxes must be _________,to close a recessionary gap resulting from a $1 billion decrease in autonomous consumption.

• A) increased by $1 billion
• B) decreased by $1 billion
• C) increased by $2 billion
• D) decreased by $2 billion
• E) increased by $0.5 billion

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Definitions:

Attachment

The emotional bond that forms between individuals, especially from a young age, influencing their relationships in the future.

Monkeys

Primates that are known for their tail presence (unlike apes), forming complex social structures and exhibiting intelligent behavior.

Emotional Tie

A strong psychological connection to a person, place, or thing, characterized by feelings of affection or emotional involvement.

Caregiver

An individual who provides care and support to someone who is unable to care for themselves due to age, illness, or disability.