If a Lump-Sum Tax of $40 Billion Is Levied at Each

question 26

Multiple Choice

If a lump-sum tax of $40 billion is levied at each level of income and the MPC is 0.75, then the saving schedule will shift:

• A) Upward by $10 billion
• B) Upward by $25 billion
• C) Downward by $10 billion
• D) Downward by $25 billion

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Definitions:

External Locus

An external locus of control refers to the belief that outside forces, beyond an individual's control, significantly influence life events and outcomes.

Secure Self-Esteem

A form of self-esteem characterized by a stable, positive self-image and confidence that is not overly reliant on external validation.

Positive Psychology

A branch of psychology focused on the study and enhancement of positive human functions, such as happiness and well-being.

Approval of Others

The act of seeking validation, acceptance, or endorsement from people around us.