If Autonomous Net Taxes Decline by $40 Billion and the MPC

question 23

Multiple Choice

If autonomous net taxes decline by $40 billion and the MPC = 0.75,then equilibrium real GDP demanded

• A)declines by $120 billion
• B)increases by $120 billion
• C)declines by $160 billion
• D)increases by $160 billion
• E)increases by $40 billion

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Definitions:

Mitochondrial DNA

A small circular strand of DNA found inside the mitochondria, the energy-producing organelles of cells, which is inherited exclusively from the mother.

Relatives

People who are connected by blood or marriage and have a familial bond or relationship.

Nuremberg Race Laws

Racial laws implemented by Nazi Germany in 1935 to systematically discriminate against Jews, including the prohibition of marriage between Jews and non-Jewish Germans.

Aryans

An ethno-linguistic term historically used to describe peoples speaking Indo-European languages, particularly in ancient times; usage varies by context.