Multiple Choice
Assume autonomous net taxes fall by $300, and the MPC equals 2/3.Net exports, planned investment, taxes, and government purchases are autonomous and remain fixed.How will disposable income initially change?
A) It will rise by $900.
B) It will rise by $300.
C) It will rise by $200.
D) It will fall by $300.
Correct Answer:
Verified
Correct Answer:
Verified
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