An Autonomous Net Tax Will

question 26

Multiple Choice

An autonomous net tax will

• A)decrease disposable income by the same amount regardless of the level of real GDP
• B)increase disposable income by the same amount regardless of the level of real GDP
• C)decrease disposable income by more than it increases real GDP
• D)increase disposable income by more than it increases real GDP
• E)have no effect on disposable income at some levels of real GDP

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