If the MPC = 0

question 50

Multiple Choice

If the MPC = 0.8,then the simple tax multiplier equals

• A)0.8
• B)4
• C)5
• D)-4
• E)-5

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Definitions:

Maximin Strategy

A decision-making rule used in game theory and statistics to maximize the minimum gain that can be achieved.

Dominant Strategy

In game theory, a strategy that is best for a player regardless of the strategies chosen by other players in the game.

Nash Equilibria

A concept in game theory where no player can gain by unilaterally changing their strategy, indicating a balance where each player's strategy is optimal given the other players' strategies.

Maximin Strategy

A strategy in decision-making which aims to maximize the minimum gain that can be earned, focusing on the worst-case scenario.