The MPC_d = 0

Multiple Choice

The MPC_d = 0.75. If the Chancellor of the Exchequer decides to cut taxes by £35 million, what would be the effect on national income?

A) National income would rise by £105 million.
B) National income would rise by £140 million.
C) National income would rise by £262.5 million.
D) National income would fall by £140 million.