In the Basic Keynesian Model Where the Marginal Propensity to Consume

question 83

Multiple Choice

In the basic Keynesian model where the marginal propensity to consume is 0.5,transfer payments 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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A strong desire to know or learn something, driving individuals to explore, investigate, and seek out new information or experiences.

Instant Gratification

The desire to experience pleasure or fulfillment without delay or deferment.

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Individuals who show courage and resolve; marked by a perseverance and passion for achieving long-term goals.

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The level of enthusiasm, commitment, and energy that an employee brings to their job, influenced by factors like recognition, rewards, and work environment.