If Autonomous Net Taxes Increase by $200 Billion and the MPC

question 14

Multiple Choice

If autonomous net taxes increase by $200 billion and the MPC equals 0.75,equilibrium income will

• A)decrease by $200 billion
• B)decrease by $150 billion
• C)decrease by $600 billion
• D)decrease by $267 billion
• E)decrease,but it is impossible to calculate the exact amount of the change

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Definitions:

Reject

To refuse to accept, submit to, believe, or make use of.

Cover

In legal and business contexts, the act of finding a substitute for goods or services when the original contract cannot be fulfilled.

UCC 2A-525(2)

A specific provision within the Uniform Commercial Code dealing with a lessee's right to cure nonconforming delivery in a lease contract.

Reclaim Goods

The process of taking back possession of sold goods by a seller under certain conditions, typically due to nonpayment or breach of contract.