Multiple Choice
If a lump-sum income tax of $25 billion is levied and the MPS is .20,the:
A) saving schedule will shift upward by $5 billion.
B) consumption schedule will shift downward by $25 billion.
C) consumption schedule will shift downward by $20 billion.
D) consumption schedule will shift upward by $25 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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