An increase in lump-sum taxes will
A) make the consumption function flatter.
B) make the consumption function steeper.
C) shift the consumption function downward.
D) shift the consumption function upward.
Correct Answer:
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Q230: Government spending increases by $80 billion and
Q231: If the tax multiplier is -4, the
Q232: If the tax multiplier is -4 and
Q233: If the tax multiplier is -2.22, the
Q234: If the tax multiplier is -15 and
Q236: If the MPC is 0.6, the tax
Q237: Taxes are reduced by $10 billion and
Q238: If the government spending multiplier is 2,
Q239: If the government spending multiplier is 6
Q240: If government spending is increased by $500,
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