The Introduction of a $100 Autonomous Net Tax in an Economy

Multiple Choice

The introduction of a $100 autonomous net tax in an economy with an MPC equal to 0.8 will,at each level of real GDP,

A) increase equilibrium real GDP demanded by $100
B) decrease equilibrium real GDP demanded by $100
C) increase equilibrium real GDP demanded by more than $100
D) decrease equilibrium real GDP demanded by less than $100
E) decrease equilibrium real GDP demanded by more than $100