Assume That the Marginal Propensity to Consume Is 0

question 278

Multiple Choice

Assume that the marginal propensity to consume is 0.8. Government purchases of goods and services increase by $100 billion, financed by a $100 billion tax increase. Real GDP will:

• A)expand by $100 billion.
• B)contract by $100 billion.
• C)expand by $500 billion.
• D)expand by $400 billion.

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Definitions:

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The act of intentionally causing one's own death, often as a response to distress, mental health conditions, or feelings of hopelessness.

Instinct Theories

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Injunctive Norm

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