Suppose President Obama Is Successful in Passing a $5 Billion

question 31

Multiple Choice

Suppose President Obama is successful in passing a $5 billion tax increase.Assume that taxes are fixed,the economy is closed,and the marginal propensity to consume is 0.75.What happens to equilibrium GDP?

• A)There is a $20 billion increase in equilibrium GDP.
• B)There is a $20 billion decrease in equilibrium GDP.
• C)There is a $15 billion increase in equilibrium GDP.
• D)There is a $15 billion decrease in equilibrium GDP.

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Definitions:

South Portal

The term generally refers to the southern entrance of a cathedral or church, which often features significant architectural details and decorations.

Naturalistic Figures

Artistic representations that aim to realistically depict human figures, focusing on accurate anatomical details and lifelike postures.

Animal Interlace

A decorative technique, common in the art of the Middle Ages, featuring interwoven animals or serpents in complex patterns.

Islamic Geometry

The intricate and pattern-based artistic tradition in Islamic culture, using geometric motifs and designs for decoration, symbolic of the unifying spiritual truth of Islam.