exports are equal
In the Keynesian cross model, if the interest rate is constant, the MPC is 0.6, and taxes
are increased by rupees 100, by how much does income change ?
A. It increases by rupees 160
B. It decreases by rupees 160
C. It decreases by rupees 150
D. It increases by rupees 150
Answers
Answered by
0
Answer:
IT INCREASES BY RUPEES 160
Explanation:
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Answered by
0
Answer:
it decreases by 160
Explanation:
taxes reduces disposable personal income and thus reduces consumption (but by less than the change in disposable personal income). That shifts the aggregate demand curve leftward by an amount equal to the initial change in consumption that the change in income taxes produces times the multiplier.
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