If Alice's taxes fell by $10 000,other things being equal,which of the following statements about her consumption is accurate?
A)It would rise by $6000 if her APC was equal to 0.6.
B)It would fall by $6000 if her APC was equal to 0.6.
C)It would rise by $6000 if her MPC was equal to 0.6.
D)It would fall by $6000 if her MPC was equal to 0.6.

Question

Quizplus · Accepted Answer

If Alice's taxes fall by $10,000 and her marginal propensity to consume (MPC) is 0.6, her consumption would increase by $10,000 * 0.6 = $6,000.

If Alice's Taxes Fell by $10 000,other Things Being Equal,which