Assume the Marginal Propensity to Consume (MPC) Is 0

question 132

Multiple Choice

Assume the marginal propensity to consume (MPC) is 0.75 and the government increases taxes by $250 billion. The aggregate demand curve will shift to the:

• A) left by $1,000 billion.
• B) right by $1,000 billion.
• C) left by $750 billion.
• D) right by $750 billion.

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Definitions:

Spiral Staircase

A type of staircase that curves around a central pole, creating a helical structure.

Chromosomes

Threadlike structures that come in 23 pairs, with one member of each pair coming from each parent. Chromosomes contain the genetic substance DNA.

Human Cell

The basic building block of the human body, which consists of a nucleus and cytoplasm enclosed in a membrane.

Genetic Expression

The process by which information from a gene is used to synthesize functional gene products, such as proteins, which can influence an organism's traits.