Which of the Following Is a Correct Statement of the Impacts

Multiple Choice

Which of the following is a correct statement of the impacts of a lump-sum tax?

A) Disposable income will increase by the amount of the tax and consumption at each level of GDP will decline by the amount of the tax multiplied by the MPC.
B) Disposable income will decline by the amount of the tax and consumption at each level of GDP will decline by the amount of the tax multiplied by the multiplier.
C) Disposable income will decline by the amount of the tax and consumption at each level of GDP will also decline by the amount of the tax.
D) Disposable income will decline by the amount of the tax and consumption at each level of GDP will decline by the amount of the tax multiplied by the MPC.