Multiple Choice
The introduction of a $100 autonomous net tax in an economy with an MPC equal to 0.7 will,at each level of real GDP,
A) increase consumption by $100
B) decrease consumption by $100
C) increase consumption by $70
D) decrease consumption by $70
E) decrease consumption by $30
Correct Answer:

Verified
Correct Answer:
Verified
Q1: If equilibrium real GDP demanded rises from
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Q5: If the MPC = 0.6 and government
Q6: If the government decreases net autonomous taxes
Q7: In which of the following ways does
Q8: Exhibit 11-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 11-5
Q9: A $200 increase in government purchases has
Q10: Which of the following is a component
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Q49: Which of the following statements best explains