Multiple Choice
Assume autonomous net taxes rise by $400, and the marginal propensity to consume equals 3/4.Net exports, planned investment, taxes, and government purchases are autonomous and remain fixed.As a result, how will consumption initially change?
A) It will fall by $400.
B) It will rise by $400.
C) It will fall by $300.
D) It will rise by $300.
Correct Answer:
Verified
Correct Answer:
Verified
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