Let Y = Real GDP and Y_d = Disposable Income

Multiple Choice

Let Y = real GDP and Y_d = disposable income.Suppose initially, Y = Y_d and the marginal propensity to consume (MPC)
Is 0.8.All components of aggregate expenditures except consumption are autonomous.Now suppose the government imposes an income tax rate of 30% on real GDP.As a result, one additional dollar will increase consumption by

A) $0.24.
B) $0.30.
C) $0.56.
D) $0.50.