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If the Government Decreases Net Autonomous Taxes by $100 Billion

Question 6

Multiple Choice

If the government decreases net autonomous taxes by $100 billion and the MPC = 0.75,then equilibrium real GDP demanded will

A) remain the same
B) increase by $300 billion
C) decrease by $300 billion
D) increase by $400 billion
E) decrease by $400 billion

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