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