If Congress adjusted the U.S. tax system so that the MPC was reduced, the:O economy would become more stable.economy would become more inflation prone.economy would become less stable.stability of the economy would be unaffected.

The consumption function depicts the relationship between income and consumption and is given by:

If Congress adjusted the U.S. tax system so that the MPC was reduced, the: O economy would become more stable. O economy would become more inflation prone. O economy would become less stable. O stability of the economy would be unaffected.

If Congress adjusted the U.S. tax system so that the MPC was reduced, the: O economy would become more stable. O economy would become more inflation prone. O economy would become less stable. O stability of the economy would be unaffected.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 6E

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Question

If Congress adjusted the U.S. tax system so that the MPC was reduced, the:
O economy would become more stable.
economy would become more inflation prone.
economy would become less stable.
stability of the economy would be unaffected.

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