Assume Autonomous Net Taxes Fall by $300; the MPC =

question 52

Multiple Choice

Assume autonomous net taxes fall by $300; the MPC = 2/3.Net exports,planned investment,taxes,and government purchases are autonomous and remain fixed.As a result,equilibrium real GDP demanded will

• A)rise by $300
• B)rise by $900
• C)fall by $300
• D)fall by $600
• E)rise by $600

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Definitions:

Gastrocnemius Muscles

A major calf muscle that is involved in walking, running, and jumping by flexing the foot at the ankle.

Soleus Muscles

A powerful muscle in the back part of the lower leg (calf) that is involved in standing and walking.

Plantar Flexion

The movement that decreases the angle between the sole of the foot and the back of the leg, as seen when pointing the toes.

Aerobic Respiration

A metabolic process in cells that uses oxygen to convert glucose or other nutrients into energy (ATP), producing carbon dioxide and water as waste products.