Assuming the MPC = 0.80 and considering only the multiplier effect, if government taxation increases by $40 billion, then national income can potentially _____ by _____.
A.
increase; $2 billion
B.
decrease; $160 billion
C.
decrease; $200 billion
D.
increase; $8 billion
Exam No：AP Macroeconomics Problem Set 1 Year：2024 Question No：APMacroeconomics2024AP0138
Answer:
B
Knowledge points:
3.2 Multipliers
Solution:
Download APP for more features
1. Tons of answers.
2. Smarter Al tools enhance your learning journey.
IOS
Download
Download
Android
Download
Download
Google Play
Download
Download