If net taxes decrease by $500 billion,both household disposable income and consumption spending will increase by $500 billion.

Name: If net taxes decrease by $500 billion,both household disposable income and consumption spending will increase by $500 billion.
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When net taxes decrease by $500 billion, household disposable income increases by $500 billion, but consumption spending will increase by less than $500 billion due to the marginal propensity to consume (MPC), which is typically less than 1.

If Net Taxes Decrease by $500 Billion,both Household Disposable Income