Multiple Choice
In an aggregate expenditures diagram, a lump-sum tax (T) will
A) not affect the C + Ig + Xn line.
B) shift the C + Ig + Xn line upward by an amount equal to T.
C) shift the C + I g + Xn line downward by an amount equal to T.
D) shift the C + Ig + Xn line downward by an amount equal to T × MPC.
Correct Answer:
Verified
Correct Answer:
Verified
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