In an Economy with Autonomous Income Taxes, an Increase in the Marginal

Multiple Choice

In an economy with autonomous income taxes, an increase in the marginal propensity to consume is most accurately thought of as

A) a leftward shift of the IS curve.
B) an increase in the interest sensitivity of the goods market.
C) a decrease in the interest sensitivity of the goods market.
D) both a and c.
E) both a and b.