If the MPC Is 2/3, the Initial Impact of an Increase

question 44

Multiple Choice

If the MPC is 2/3, the initial impact of an increase of $12 billion in lump-sum taxes will be to cause

• A)a rightward shift in the investment demand schedule.
• B)an $8 billion downshift in the consumption schedule.
• C)a $4 billion upshift in the consumption schedule.
• D)a $12 billion downshift in the consumption schedule.

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Definitions:

Developing Procedures

The process of establishing formal steps or methods to complete tasks efficiently and effectively in organizations.

Forming Stage

The initial phase in group development where members come together, learn about each other, and begin to form the structure and dynamics of the team.

Task-Oriented

Focused primarily on accomplishing specific objectives, often characterized by a high level of organization and attention to detail.

Relations-Oriented

A leadership or management style that emphasizes maintaining positive relationships within a team or organization.