If the Government Decreases Net Autonomous Taxes by $100 Billion

question 6

Multiple Choice

If the government decreases net autonomous taxes by $100 billion and the MPC = 0.75,then equilibrium real GDP demanded will

• A)remain the same
• B)increase by $300 billion
• C)decrease by $300 billion
• D)increase by $400 billion
• E)decrease by $400 billion

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Definitions:

Chemical Processes

Involves changes in chemical substances through reactions, leading to the formation of new substances.

Secondary Sewage Treatment

A stage in wastewater treatment involving biological processes to degrade organic matter, following primary treatment which mainly removes solid materials.

Biological Process

Natural processes involving living organisms, such as growth, reproduction, and metabolism.

Detergents

Chemical compounds used to remove dirt, stains, and other substances by lowering the surface tension of water, commonly found in cleaning products.