Answered

Find answers to your questions faster and easier with IDNLearn.com. Join our community to receive timely and reliable responses to your questions from knowledgeable professionals.

If the marginal propensity to consume is two thirds, then an increase in personal income taxes of $100 will most likely result in If the marginal propensity to consume is two thirds, then an increase in personal income taxes of $100 will most likely result in a decrease in autonomous investment of $100. a decrease in consumption of $67 and an decrease in savings of $33. a decrease in consumption of $67 and an increase in savings of $33. a decrease in consumption of $100.

Sagot :

When personal income taxes is increased, there would be a decrease in consumption of $67.

What is the MPC?

The marginal propensity to consume is the proportion of the disposable income that is spent. When personal income taxes are increased, there would be a decrease in the disposable income. The decrease in disposable income would reduce the income avalialbe for consumption.

Decrease in consumption = 2/3 x $100 = $67

To learn more about marginal propensity to consume, please check: https://brainly.com/question/19089833

#SPJ1

Your participation is crucial to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. IDNLearn.com is dedicated to providing accurate answers. Thank you for visiting, and see you next time for more solutions.