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6 years ago
Assume that all taxes are lump-sum, net exports = 0, and the marginal propensity to consume is 0.8. Then, if investment and taxes were each to fall by $100 million, the equilibrium level of income would
A) rise by $100 million.
B) fall by $100 million.
C) rise by $500 million.
D) fall by $500 million.
Textbook 
Macroeconomics

Macroeconomics


Edition: 12th
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thecromthecrom
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Scribs Author
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6 years ago
Smart ... Thanks!
Chaldoren
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Yesterday
this is exactly what I needed
zbmallo3
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2 hours ago
Correct Slight Smile TY
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