If Net Taxes Increase by $100 Billion and the Marginal

question 109

Multiple Choice

If net taxes increase by $100 billion and the marginal propensity to consume is 0.6,by how much will GDP change?

• A) -$250 billion
• B) $150 billion
• C) $250 billion
• D) -$100 billion
• E) -$150 billion

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Definitions:

Social Roles

Behaviors that manage relationships and affect group climate; these roles help resolve conflict and enhance the flow of communication.

Interpersonal Relationships

The connections and associations formed between people through social or professional interactions.

Group Talk

A situation in which multiple people converse and exchange ideas in a collective setting.

Unanimity

Complete agreement or concord among all members or participants.