Multiple Choice
Assume autonomous net taxes rise by $400; the marginal propensity to consume = 3/4.Net exports,planned investment,taxes,and government purchases are autonomous and remain fixed.As a result,saving will initially
A) fall by $400
B) rise by $300
C) remain unchanged
D) fall by $100
E) rise by $100
Correct Answer:

Verified
Correct Answer:
Verified
Q20: A $100 increase in government purchases will
Q21: Assume autonomous net taxes rise by $400;
Q22: Suppose both autonomous taxes and transfer payments
Q23: If autonomous net taxes decline by $40
Q24: If government purchases and autonomous net taxes
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
Q29: If the multiplier for autonomous government purchases
Q30: An increase in net taxes<br>A)raises aggregate expenditure