Multiple Choice
When taxes are decreased,disposable income _______ and consumption spending ______________ multiplied by the change in disposable income.
A) rises;rises by the marginal propensity to consume
B) falls;falls by the marginal propensity to consume
C) rises;falls by the marginal propensity to consume
D) falls;rises by the marginal propensity to consume
Correct Answer:
Verified
Correct Answer:
Verified
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