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Assume a Simple Model of the Expenditure Sector with No

Question 18

Multiple Choice

Assume a simple model of the expenditure sector with no income taxes.If a lump sum tax decrease of 200 leads to an increase in income of 800, what is the size of the mps?


A) 0) 10
B) 0) 20
C) 0) 25
D) 0) 40
E) 0) 80

Correct Answer:

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