Assume a model with an income tax rate of t = 0.25 and a marginal propensity to consume of c = 0.8. What could cause the level of equilibrium income to decrease by 1,000? A . A decrease in autonomous net exports of 400 b. A decrease in autonomous saving of 200 c. A decrease in government purchases of 250 d. A decrease in government transfer payments of 500 e. An increase in autonomous investment of 500

ENGR.ECONOMIC ANALYSIS
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Assume a model with an income tax rate of t = 0.25 and a marginal propensity to consume

of c = 0.8. What could cause the level of equilibrium income to decrease by 1,000?

A

.

A decrease in autonomous net exports of 400

b.

A decrease in autonomous saving of 200

c.

A decrease in government purchases of 250

d.

A decrease in government transfer payments of 500

e.

An increase in autonomous investment of 500

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