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

question 37

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.Disposable income will initially

• A)remain unchanged
• B)rise by $300
• C)rise by $200
• D)rise by $900
• E)fall by $300