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    ECON Macro Principles
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    Exam 12: Fiscal Policy
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    Suppose Autonomous Net Taxes Increase by $200 Billion and the MPC
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Suppose Autonomous Net Taxes Increase by $200 Billion and the MPC

Question 15

Question 15

Multiple Choice

Suppose autonomous net taxes increase by $200 billion and the MPC equals 0.75.By what amount will equilibrium income decrease?  


A)  by $150 billion 
B)  by $200 billion 
C)  by $267 billion 
D)  by $600 billion

Correct Answer:

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