If the MPC is 0.8 and net taxes increase by $100 billion, what is the effect on equilibrium output?
a. There is no effect; equilibrium output is not affected by a change in net taxes.
b. Equilibrium output will fall by $80 billion.
c. Equilibrium output will fall by $125 billion.
d. Equilibrium output will fall by $400 billion.
e. Equilibrium output will fall by $500 billion.
D
Economics
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In the above figure, the monopolistically competitive firm produces
A) Q3 and sets the price at P3. B) Q2 and sets the price at P2. C) Q1 and sets the price at P1. D) Q1 and sets the price at P5.
Economics
Which of the following macroeconomic variables would you include in an index of leading economic indicators?
A) Employment B) Inflation C) Real interest rates D) Residential investment
Economics