Multiple Choice
Assume that the consumption function is given by C = 150 + 0.85(Y - T) , the tax function is given by T = t + t Y, and Y 0 1
Is 5,000. If t decreases from 0.3 to 0.2, then consumption increases by:
1
A) 85.
B) 425.
C) 500.
D) 525.
Correct Answer:
Verified
Correct Answer:
Verified
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