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:

Group Polarization

The tendency of a group to make decisions that are more extreme than the initial inclination of its members.

Risky Shift

A phenomenon in group decision-making processes where groups tend to make riskier decisions compared to individuals.

Non-Directive Group Leader

A leader who takes a passive role, encouraging group members to lead discussions and make decisions, thereby fostering autonomy and self-direction.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.