If the Government Decreases Net Autonomous Taxes by $100 Billion

question 6

Multiple Choice

If the government decreases net autonomous taxes by $100 billion and the MPC = 0.75,then equilibrium real GDP demanded will

• A)remain the same
• B)increase by $300 billion
• C)decrease by $300 billion
• D)increase by $400 billion
• E)decrease by $400 billion

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