If the MPC Is 0

question 172

Multiple Choice

If the MPC is 0.95,then a $10 million increase in disposable income will

• A)increase consumption by $200 million.
• B)increase consumption by $9.5 million.
• C)decrease consumption by $105 million
• D)increase consumption by $950 million.

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Definitions:

GST

Goods and Services Tax, a value-added tax imposed on most goods and services sold for domestic consumption.

PST

PST stands for Provincial Sales Tax, which is a tax levied by individual provinces in Canada on the sale of goods and services.

Property Taxes

It is a levy imposed by a government on a property owner, usually based on the value of the property.

Mill Rate

The amount of tax payable per dollar of the assessed value of property, used in calculating property taxes.