Multiple Choice
If the savings function is S = - 400 + (0.25) YD, the marginal income tax rate is t = 0.2, and the equilibrium level of income increases by 1,000, by how much will consumption change?
A) 250
B) 400
C) 600
D) 750
E) 800
Correct Answer:
Verified
Correct Answer:
Verified
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