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    Economics A Contemporary Introduction
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    Exam 24: The Algebra of Demand-Side Equilibrium
  5. Question
    Assume Autonomous Net Taxes Fall by $300; the MPC =
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Assume Autonomous Net Taxes Fall by $300; the MPC =

Question 33

Question 33

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

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