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Assume Autonomous Net Taxes Fall by $300; the MPC =

Question 38

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,saving will initially


A) fall by $100
B) rise by $100
C) fall by $300
D) remain unchanged
E) be indeterminate

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