If Transfer Payments and Autonomous Taxes Both Increase by Identical

Multiple Choice

If transfer payments and autonomous taxes both increase by identical amounts,

A) equilibrium income will increase by the amount of the increase
B) equilibrium income will increase by more than the increase
C) equilibrium income will increase by less than the increase
D) the change in equilibrium income will depend on the value of the MPC
E) there will be no change in equilibrium income