Multiple Choice
Assume the savings function is defined as S = - 200 + (0.25) YD and the marginal income tax rate is t = 0.5.If autonomous investment increased by 50, then the full-employment budget surplus would
A) not be affected
B) increase by 10
C) increase by 40
D) increase by 80
E) increase by 100
Correct Answer:
Verified
Correct Answer:
Verified
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