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When the Consumption Function Is Expressed as C = 200

Question 82

Multiple Choice

When the consumption function is expressed as C = 200 + .75(1- t) y where t =0.2, then an increase in income y by 100 will result in an increase in tax collection by:


A) 20.
B) 15.
C) 80.
D) 75.

Correct Answer:

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