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