Which of the following changes in taxes would lead to the smallest increase in consumption?
a. a $20,000 decrease in taxes, if MPC equals 0.5
b. a $12,000 decrease in taxes, if MPC equals 0.75
c. a $15,000 decrease in taxes, if MPC equals 0.6
d. a $30,000 decrease in taxes, if MPC equals 0.25
d
Economics
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The impact of expansionary fiscal policy is weakened because of crowding out.
a. true b. false
Economics
Until recently, many developing countries
A) encouraged foreign direct investment but discouraged foreign portfolio investment. B) sealed themselves off from foreign investment. C) were quite open to foreign investment. D) encouraged foreign portfolio investment but discouraged foreign direct investment.
Economics