Assume a Simple Model of the Expenditure Sector with No

question 30

Multiple Choice

Assume a simple model of the expenditure sector with no income taxes.If a lump sum tax decrease of 200 leads to an increase in income of 800, what is the size of the mps?

• A)0)10
• B)0)20
• C)0)25
• D)0)40
• E)0)80