The Following Information Is for a Closed Economy: Refer

question 67

Multiple Choice

The following information is for a closed economy: Refer to the above information.The addition of a $100 billion lump-sum tax:

• A)reduces the MPC and increases the multiplier.
• B)increases the MPC and decreases the multiplier.
• C)increases both the MPC and the multiplier.
• D)has no effect on either the MPC or the multiplier.