Suppose the net taxes on the quantity of real GDP demanded changes.How would this change be expressed?
A) as a shift in the consumption function times the marginal propensity to consume
B) as a shift in the consumption function times the marginal propensity to save
C) as a shift in the consumption function times the autonomous net tax multiplier
D) as a shift in the consumption function times the simple spending multiplier

Question

Suppose the net taxes on the quantity of real GDP demanded changes.How would this change be expressed?  
A) as a shift in the consumption function times the marginal propensity to consume 
B) as a shift in the consumption function times the marginal propensity to save 
C) as a shift in the consumption function times the autonomous net tax multiplier 
D) as a shift in the consumption function times the simple spending multiplier

Quizplus · Accepted Answer

The Answer of Suppose the net taxes on the quantity of real GDP demanded changes.How would this change be expressed?  
A) as a shift in the consumption function times the marginal propensity to consume 
B) as a shift in the consumption function times the marginal propensity to save 
C) as a shift in the consumption function times the autonomous net tax multiplier 
D) as a shift in the consumption function times the simple spending multiplier

Suppose the Net Taxes on the Quantity of Real GDP