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If Autonomous Net Taxes Increase by $10 Trillion and the Marginal

Question 105

Multiple Choice

If autonomous net taxes increase by $10 trillion and the marginal propensity to consume is 0.8,consumption initially will

A) increase by $50 trillion
B) decrease by $10 trillion
C) decrease by $8 trillion
D) increase by $10 trillion
E) decrease by $50 trillion

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