Within the simple Keynesian model with lump-sum taxes, if the MPC (b) were 0.75 then if taxes rise by $200 then income
a. rises by $800.
b. falls by $200.
c. falls by $800.
d. rises by $200.
e. falls by $800.
E
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The quantity produced in a monopolistically competitive market is ________ than the quantity produced in a perfectly competitive market, and the price charged in a monopolistically competitive market is ________ than the price charged in a perfectly
competitive market. A) higher; higher B) lower; higher C) higher; lower D) lower; lower
Which of the following would not cause a movement along the AD curve?
a. An increase in the price level. b. A decrease in the price level. c. A change in the interest rate caused by a change in the price level. d. A change in autonomous consumption e. Both a change in the interest rate caused by a change in the price level, and a change in autonomous consumption.