Multiple Choice
Suppose autonomous net taxes decline by $40 billion and the MPC equals 0.75.What effect will this have on equilibrium real GDP demanded?
A) It will decline by $120 billion.
B) It will increase by $120 billion.
C) It will decline by $160 billion.
D) It will increase by $160 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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