Multiple Choice
In a country without foreign trade and no income taxes,if the government increases autonomous taxes by 1000 and the MPS is 0.1,then the initial or first round change in expenditures by all tax payers will be
A) a reduction equal to 1000.
B) an increase equal to 1000.
C) a reduction equal to 900.
D) an increase equal to 900.
Correct Answer:
Verified
Correct Answer:
Verified
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