Suppose the MPC Is 0

question 55

Multiple Choice

Suppose the MPC is 0.60.Assume there are no crowding out or investment accelerator effects.If the government increases expenditures by $200 billion,then by how much does aggregate demand shift to the right? If the government decreases taxes by $200 billion,then by how much does aggregate demand shift to the right?

• A)$300 billion and $180 billion
• B)$300 billion and $300 billion
• C)$500 billion and $300 billion
• D)$500 billion and $500 billion

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Definitions:

Cost Per Minute

A metric used to measure the cost incurred by an operation or process on a per-minute basis, often used in efficiency and productivity analyses.

Customer Cost Analysis

An assessment of the costs associated with acquiring and serving a customer, used to evaluate the profitability of customer relationships.

Time-Driven Activity-Based Costing

An accounting method that assigns costs based on the actual time resources are consumed by activities, improving accuracy of cost allocation.

Tech Support Department

A specialized unit within a company that provides technical assistance and support related to computer systems, software, and hardware to customers or employees.