If the MPC is 0.75, a $200 million transfer payment decrease ultimately
A. Increases spending by $150 million.
B. Increases spending by $600 million.
C. Reduces spending by $600 million.
D. Reduces spending by $150 million.
Answer: C
Economics
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A) rise; rise B) fall; fall C) rise; fall D) fall; rise
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In economics, the accumulated skills and training that workers have is known as
A) physical capital. B) human capital. C) innovation. D) entrepreneurship.
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