Assume the MPC Is 0

question 100

Multiple Choice

Assume the MPC is 0.65.Assuming only the multiplier effect matters,a decrease in government purchases of $20 billion will shift the aggregate demand curve to the

• A)left by about $30.77 billion.
• B)left by about $57.1 billion.
• C)right by about $57.1 billion.
• D)right by about $30.77 billion.

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Definitions:

Likert Scale

A psychometric scale commonly used in questionnaires to represent people's attitudes or feelings on a linear scale of varying degrees of agreement or disagreement.

Neutral Opinion

A stance or viewpoint that is neither favorably nor unfavorably inclined towards a particular belief or position.

Specific Actions

Concrete steps or tasks planned or taken to achieve a particular objective.

Behavior Questions

Queries designed to elicit information on how an individual has acted or reacted in certain situations, often used in interviews.