In a Country Without Foreign Trade and Income Taxes,if the Government

Multiple Choice

In a country without foreign trade and income taxes,if the government decreases autonomous spending and autonomous taxes by 50 then total expenditures and output will

A) increase by 50 if the MPC is 1.
B) decrease by 50 for any value of the MPS greater than zero.
C) decrease by 100 if the MPS is 0.5.
D) increase by 200 if the MPS is 0.25.