Income choices: a. What will a 2% increase in tax rates do to disposable income? b. If Eduardo’s disposable income increases from $1,200 to $1,700 and his level of saving increases from minus $100 to a plus $100, his marginal propensity to save is:
Income choices: a. What will a 2% increase in tax rates do to disposable income? b. If Eduardo’s disposable income increases from $1,200 to $1,700 and his level of saving increases from minus $100 to a plus $100, his marginal propensity to save is:
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 1.3P
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Income choices:
a. What will a 2% increase in tax rates do to disposable income?
b. If Eduardo’s disposable income increases from $1,200 to $1,700 and his level of saving increases from minus $100 to a plus $100, his marginal propensity to save is:
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