4 What impact would a combination of a higher level of investment confidence and a decrease in the government budget deficit have on real interestrate?Oa It would increase the real interest rateOb. It would leave the real interest rate unchangedOC. Interest rate could either increase, decrease or remain unchangedOd It would decrease the real interest rate Which of the following changes in personal income tax would lead to the smallest increase in consumption?O a. a $30 000 decrease in taxes, if MPC equals 0.25O b. a $15000 decrease in taxes, if MPC equals 0.6O C. a $20 000 decrease in taxes, if MPC equals 0.5O d. a $12 000 decrease in taxes, if MPC equals 0.75Oe.a $10 000 decrease in taxes, if MPC equals 0.2

Investment confidence indicates the confidence that investors have in investing in the production…

Which of the following changes in personal income tax would lead to the smallest increase in consumption? O a. a $30 000 decrease in taxes, if MPC equals 0.25 O b. a $15000 decrease in taxes, if MPC equals 0.6 O C. a $20 000 decrease in taxes, if MPC equals 0.5 O d. a $12 000 decrease in taxes, if MPC equals 0.75 Oe. a $10 000 decrease in taxes, if MPC equals 0.2

Which of the following changes in personal income tax would lead to the smallest increase in consumption? O a. a $30 000 decrease in taxes, if MPC equals 0.25 O b. a $15000 decrease in taxes, if MPC equals 0.6 O C. a $20 000 decrease in taxes, if MPC equals 0.5 O d. a $12 000 decrease in taxes, if MPC equals 0.75 Oe. a $10 000 decrease in taxes, if MPC equals 0.2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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