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

question 37

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.Disposable income will initially

• A)remain unchanged
• B)rise by $300
• C)rise by $200
• D)rise by $900
• E)fall by $300

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Definitions:

Electroencephalogram

An electroencephalogram (EEG) is a test that records electrical activity in the brain, used to diagnose neurological conditions and for scientific research into brain functions.

Electromyogram

A diagnostic test that measures the electrical activity of muscles in response to stimulation.

Functional MRI

Magnetic resonance imaging uses a magnet to obtain scans of structures of the brain. Functional magnetic resonance imaging (fMRI) provides information on the amount of activity in different brain structures.

Electrocardiogram

A medical test that records the electrical activity of the heart to detect heart problems.