Multiple Choice
If the MPC is 0.9, then an increase in taxes of $100 can be expected to __________ consumption by the amount of __________.
A) increase; $90
B) decrease; $90
C) increase; $100
D) decrease; $100
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q61: If the interest rate fell below the
Q62: In the Keynesian world a rising real
Q63: A horizontal aggregate supply curve reflects the
Q64: If an individual earns $1,500 a month
Q65: In the Keynesian model, an unwanted decrease
Q67: According to the Keynesian view of the
Q68: In terms of the aggregate demand and
Q69: In a simple Keynesian model, a decrease
Q70: According to Keynes, the key difference between
Q71: In the Keynesian world a falling real