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

question 33

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.As a result,consumption will initially

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

---

Definitions:

Investment Purposes

Objectives behind allocating resources, including money, into assets expected to yield financial returns or appreciate in value over time.

Worthless

An adjective describing something that has no monetary value, usefulness, or importance.

Personal Computers

Electronic computing devices designed for individual use, often consisting of a monitor, keyboard, mouse, and a processing unit.

Quality

The standard of something as measured against other things of a similar kind; the degree of excellence of something.