Suppose the MPC Is 0

question 39

Multiple Choice

Suppose the MPC is 0.9.There are no crowding out or investment accelerator effects.If the government increases its expenditures by $30 billion,then by how much does aggregate demand shift to the right? If the government decreases taxes by $30 billion,then by how far does aggregate demand shift to the right?

• A)$283 billion and $254.7 billion
• B)$283 billion and $283 billion
• C)$300 billion and $270 billion
• D)$300 billion and $300 billion

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Definitions:

Aton

The sun disk or deity in ancient Egyptian religion, representing a monotheistic form of worship under Pharaoh Akhenaten.

Osiris

An ancient Egyptian god associated with the afterlife, resurrection, and agriculture, often depicted as a mummified ruler.

Civilization

An advanced stage of human social development and organization that is marked by complex political, economic, and cultural institutions.

Nile

is the longest river in Africa, flowing northward through northeastern Africa, historically supporting the civilizations of ancient Egypt.