Multiple Choice
Assume autonomous net taxes fall by $300; the MPC = 2/3.Net exports,planned investment,taxes,and government purchases are autonomous and remain fixed.As a result,consumption will initially
A) remain unchanged
B) rise by $300
C) fall by $300
D) rise by $200
E) fall by $200
Correct Answer:

Verified
Correct Answer:
Verified
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Q31: Exhibit 11-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 11-5
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