If Autonomous Net Taxes Decline by $40 Billion and the MPC

question 23

Multiple Choice

If autonomous net taxes decline by $40 billion and the MPC = 0.75,then equilibrium real GDP demanded

• A)declines by $120 billion
• B)increases by $120 billion
• C)declines by $160 billion
• D)increases by $160 billion
• E)increases by $40 billion

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