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vellojo vellojo
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7 years ago
The effect of a change in taxes is less than the same sized change in government expenditures because
A) the amount by which consumption initially changes is the MPC times the tax change.
B) changes in government expenditure do not directly affect consumption.
C) tax rates are the same regardless of income levels.
D) the amount by which taxes change is affected by the MPC.
Textbook 
Foundations of Macroeconomics

Foundations of Macroeconomics


Edition: 8th
Authors:
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Studying economics @ Edinburgh U
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amishamish
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7 years ago
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vellojo Author
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#2
7 years ago
Checks out after I submitted my assignment Smiling Face with Open Mouth
Studying economics @ Edinburgh U
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