If Policy Makers Want to Increase Real GDP by $100

question 119

Multiple Choice

If policy makers want to increase real GDP by $100 billion and the marginal propensity to consume is 0.75, they should _____ taxes by _____ .

• A)decrease; more than $25 billion
• B)decrease; less than $25 billion
• C)increase; more than $25 billion
• D)increase; less than $25 billion

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Definitions:

Human Resources Management

A function in organizations designed to maximize employee performance in service of an employer's strategic objectives, focusing on policies and systems.

Selection

The process of collecting information about applicants and using that information to make hiring decisions.

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