Assume autonomous net taxes rise by $400; the marginal propensity to consume = 3/4.Net exports,planned investment,taxes,and government purchases are autonomous and remain fixed.As a result,saving will initially
A) fall by $400
B) rise by $300
C) remain unchanged
D) fall by $100
E) rise by $100
Correct Answer:
Verified
Q60: The formula for the multiplier that results
Q61: If the MPC = 0.8,then the simple
Q62: Assume autonomous net taxes fall by $300;
Q63: Assume autonomous net taxes rise by $500;
Q64: If the government decreases net autonomous taxes
Q66: Assume autonomous net taxes rise by $400;
Q67: Assume autonomous net taxes rise by $500;
Q68: If autonomous net taxes decline by $40
Q69: Assume autonomous net taxes fall by $300;
Q70: Assume autonomous net taxes fall by $300;
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents