Assume Autonomous Net Taxes Fall by $300, and the MPC

question 100

Multiple Choice

Assume autonomous net taxes fall by $300, and the MPC equals 2/3.Net exports, planned investment, taxes, and government purchases are autonomous and remain fixed.As a result, how will saving initially change?  

• A) It will fall by $100. 
• B) It will rise by $100. 
• C) It will fall by $300. 
• D) It will rise by $300