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If Autonomous Net Taxes Increase by $200 Billion and the MPC

Question 14

Multiple Choice

If autonomous net taxes increase by $200 billion and the MPC equals 0.75,equilibrium income will


A) decrease by $200 billion
B) decrease by $150 billion
C) decrease by $600 billion
D) decrease by $267 billion
E) decrease,but it is impossible to calculate the exact amount of the change

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