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:

Marijuana Use

The act of consuming marijuana, a psychoactive drug from the Cannabis plant, for medical, recreational, or other purposes.

Meth

Short for methamphetamine, a powerful, highly addictive stimulant affecting the central nervous system.

Cocaine Addiction

Cocaine addiction is a chronic disease characterized by a compulsive need to use cocaine despite harmful consequences.

Marijuana

A substance obtained from the Cannabis plant that affects the mind, employed for therapeutic or recreational uses.