Multiple Choice
In our simple macro model with government,which statement correctly describes the following equation: 
= (0.75) Y?
A) If disposable income increases by $0.75,then national income increases by $1.00 and total tax revenue rises by $0.75.
B) Net tax revenue is equal to 75% of national income.
C) If national income increases by $1.00,then disposable income increases by $0.75 and net tax revenue increases by $0.25.
D) Net tax revenue is equal to 25% of disposable income.
E) If national income increases by $1.00,then disposable income increases by $0.25 and net tax revenue increases by $0.75.
Correct Answer:
Verified
Correct Answer:
Verified
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