Multiple Choice
If autonomous net taxes decline by $40 billion and the MPC = 0.75,then equilibrium real GDP demanded
A) declines by $120 billion
B) increases by $120 billion
C) declines by $160 billion
D) increases by $160 billion
E) increases by $40 billion
Correct Answer:
Verified
Correct Answer:
Verified
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;
Q22: Suppose both autonomous taxes and transfer payments
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;
Q28: Which of the following will not increase