Multiple Choice
-Refer to Figure 11-3.Which of the following could explain the shift from C₁ to C₂?
A) An increase in disposable income
B) An increase in net taxes that increases the marginal propensity to consume
C) A decrease in net taxes that increases the marginal propensity to consume
D) An increase in net taxes that increases autonomous consumption spending
E) A decrease in net taxes that increases autonomous consumption spending.
Correct Answer:

Verified
Correct Answer:
Verified
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