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

question 38

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,saving will initially

• A)fall by $100
• B)rise by $100
• C)fall by $300
• D)remain unchanged
• E)be indeterminate

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