Narrbegin Exhibit 17

question 57

Multiple Choice

Narrbegin Exhibit 17.2 Aggregate demand and supply model
-Suppose the economy in Exhibit 17.2 is in equilibrium at point E₁ and the marginal propensity to consume (MPC) is 0.75. Following Keynesian economics, the federal government can move the economy to point E₂ and reduce inflation by:

• A) increasing government tax revenue by $6 billion.
• B) decreasing government tax revenue by $6.1 billion.
• C) decreasing government tax revenue by $200 billion.
• D) increasing government tax revenue by approximately $66 billion.

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Definitions:

Natural Selection

A process by which organisms better adapted to their environment tend to survive and produce more offspring.

Charles Darwin

A British naturalist and biologist known for his theory of evolution and the process of natural selection.

Genetics

The study of heredity and the variation of inherited characteristics.

Transmitting Characteristics

The process of passing genetic traits or cultural attributes from one generation to the next.