Which of the following changes in taxes would lead to the greatest increase in consumption?
A) a $15 000 decrease in taxes, if MPC equals 0.6
B) a $20 000 decrease in taxes, if MPC equals 0.5
C) a $12 000 decrease in taxes, if MPC equals 0.75
D) a $30 000 decrease in taxes, if MPC equals 0.25
Correct Answer:
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