Which of the Following Would Cause the Level of Income

question 30

Multiple Choice

Which of the following would cause the level of income to change by the greatest amount,ceteris paribus?

• A)An increase in Social Security payments of $10 billion.
• B)A reduction in personal income taxes of $10 billion.
• C)An increase in defense spending of $10 billion.
• D)All of the other choices have equal impacts on the level of income.

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