If the MPC Is 0

question 15

Multiple Choice

If the MPC is 0.6 and if government purchases and net taxes both increase by $20 billion,by how much will equilibrium output change?

• A) It will increase by $80 billion.
• B) It will increase by $20 billion.
• C) It will not change because the changes in government purchases and net taxes will cancel each other out.
• D) It will decrease by $20 billion.
• E) It will decrease by $80 billion.

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Definitions:

Glucose

serves as a primary source of energy in most organisms, critical for cellular respiration and metabolic processes.

Turn

In a molecular context, a turn refers to a type of secondary structure in proteins where the chain makes a sharp change in direction.

Glycolysis

The metabolic pathway that converts glucose into pyruvate, producing ATP and NADH in the process, functioning in the cytoplasm of the cell.

Aerobic Respiration

The metabolic process in which cells convert glucose and oxygen into energy, carbon dioxide, and water; it is the primary method of energy production in animals.