Assume That There Is No Accelerator Affect

question 44

Multiple Choice

Assume that there is no accelerator affect.The MPC = 3/4.The government increases both expenditures and taxes by $600.The effect of taxes on aggregate demand is 3/4 the size of that created by government expenditures alone.The crowding out effect is 1/5 as strong as the combined effect of government expenditures and taxes on aggregate demand.How much does aggregate demand shift by?

• A)$1480
• B)$480
• C)$160
• D)None of the above is correct.

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Definitions:

Sperm Cell

A cell produced by the male reproductive system for the purpose of fertilization, carrying half of the genetic information required to form a new organism.

Behavior Genetics

The field of study that examines the role of genetic and environmental factors in shaping behaviors.

Genetic and Environmental Influences

The combined effects of biological/genetic predispositions and environmental factors in shaping an individual's traits and behaviors.

Epigenetics

The study of heritable changes in gene expression that do not involve changes to the underlying DNA sequence, influenced by environmental factors.