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

question 67

Multiple Choice

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

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

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