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

question 27

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.The value of the spending multiplier equals

• A)1
• B)10
• C)3
• D)0
• E)an indeterminate value

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Definitions:

AVERAGE(range)

A function used in spreadsheet software to calculate the arithmetic mean of a range of cells.

Mean Value

The average of a set of numbers, found by dividing the sum of all values by the number of values.

Statistical Thinking

An approach to understanding, interpreting, and communicating data through the use of statistical methods and reasoning.

Interconnected Processes

Processes that are linked with one another such that the output of one process becomes the input for another, creating a complex system where the processes depend on each other.