Solved

Suppose Both Autonomous Taxes and Transfer Payments Increase by $50

Question 22

Multiple Choice

Suppose both autonomous taxes and transfer payments increase by $50 billion.If the MPC = 0.75,by how much does equilibrium real GDP demanded change?

A) $0
B) $50 billion
C) -$50 billion
D) $200 billion
E) -$200 billion

Related Questions

Q17: If the government increases its purchases by

Q18: The formula for the multiplier that results

Q19: The introduction of an autonomous net tax

Q20: A $100 increase in government purchases will

Q21: Assume autonomous net taxes rise by $400;

Q23: If autonomous net taxes decline by $40

Q24: If government purchases and autonomous net taxes

Q25: Assume autonomous net taxes rise by $400;

Q26: An autonomous net tax will<br>A)decrease disposable income

Q27: Assume autonomous net taxes fall by $300;