Assume an economy with an upward-sloping aggregate supply curve and an MPC of .80 . An increase in investment spending of $50 billion will most likely increase total income by

An increase in tax revenues ________ government saving and ________ national saving

A) raises, raises B) raises, lowers C) lowers, raises D) lowers, lowers

As a tax becomes larger, it ______.

a. generates an even level of revenue b. generates proportionately more revenue c. becomes more efficient d. becomes less efficient