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If a Lump-Sum Tax of $40 Billion Is Levied at Each

Question 96

Multiple Choice

If a lump-sum tax of $40 billion is levied at each level of income and the MPC is 0.75, then the saving schedule will shift

A) upward by $10 billion.
B) upward by $25 billion.
C) downward by $10 billion.
D) downward by $25 billion.

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