Which of the Following Changes in Taxes Would Lead to the Greatest

question 52

Multiple Choice

Which of the following changes in taxes would lead to the greatest increase in consumption?

• A)a $15 000 decrease in taxes, if MPC equals 0.6
• B)a $20 000 decrease in taxes, if MPC equals 0.5
• C)a $12 000 decrease in taxes, if MPC equals 0.75
• D)a $30 000 decrease in taxes, if MPC equals 0.25

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Definitions:

English Auction

A bidding process where participants bid openly against one another, and the item is sold to the highest bidder.

Estimates Values

An approximation of the worth of goods, services, or financial instruments calculated through analysis or assessment techniques.

High-value

Describes goods, services, or properties that possess a significant worth or quality compared to others of a similar nature.

Winning Price

The final price at which a good or service is sold in an auction or competitive bidding process.