Assume Autonomous Net Taxes Fall by $300; the MPC =

question 52

Multiple Choice

Assume autonomous net taxes fall by $300; the MPC = 2/3.Net exports,planned investment,taxes,and government purchases are autonomous and remain fixed.As a result,equilibrium real GDP demanded will

• A)rise by $300
• B)rise by $900
• C)fall by $300
• D)fall by $600
• E)rise by $600

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