Solved

If the MPC Is 2/3, the Initial Impact of an Increase

Question 44

Multiple Choice

If the MPC is 2/3, the initial impact of an increase of $12 billion in lump-sum taxes will be to cause


A) a rightward shift in the investment demand schedule.
B) an $8 billion downshift in the consumption schedule.
C) a $4 billion upshift in the consumption schedule.
D) a $12 billion downshift in the consumption schedule.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q30: (Advanced analysis) The given equations describe consumption

Q39: If the MPC is 0.8 in a

Q40: If consumers respond to a tax-cut by

Q41: One basic assumption of the aggregate expenditures

Q42: In a recessionary expenditure gap, the equilibrium

Q43: An economy characterized by high unemployment is

Q45: If the MPC in an economy is

Q46: The recessionary expenditure gap associated with the

Q48: An increase in taxes of a specific

Q63: If net exports are positive,<br>A) the equilibrium