Use the table below to determine the impact on consumption spending of a $100 increase in net taxes. 
A) Consumption will decrease by $80.
B) Consumption will increase by $80.
C) The marginal propensity to consume will increase to .91.
D) The marginal propensity to consume will decrease to .73.
E) The change in net taxes will not change consumption.
Correct Answer:
Verified
Q41: If real disposable income increased by $10,000
Q43: If expectations of future income become more
Q47: The marginal propensity to consume is always
A)
Q48: If the marginal propensity to consume is
Q49: If net taxes decrease,which of the following
Q52: At each level of income,net taxes reduce
Q58: Which of the following is not another
Q62: In the short-run macro model,what is the
Q74: Aggregate expenditure includes final spending by households,businesses,and
Q76: If income increased by $20,000,investment spending is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents