If autonomous net taxes increase by $200 billion and the MPC equals 0.75,equilibrium income will
A) decrease by $200 billion
B) decrease by $150 billion
C) decrease by $600 billion
D) decrease by $267 billion
E) decrease,but it is impossible to calculate the exact amount of the change
Correct Answer:
Verified
Q3: Which of the following statements best explains
Q36: A decrease in net taxes
A)raises aggregate expenditure
Q37: Exhibit 11-5 Q38: In which of the following ways does Q39: A $100 increase in government purchases will Q42: If autonomous net taxes equal $1 trillion Q43: A tax is considered to be autonomous Q44: The simple tax multiplier is Q45: Of the following fiscal programs,which has the Q46: If autonomous net taxes decrease,which of the
A)1/MPC
B)1
C)1/(1 - MPC)
D)MPC/(1
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