Question
Suppose savings are $890. The government imposes lump sum tax $60 . If the MPS is 0.4, then the savings after the imposition of lump
Suppose savings are $890. The government imposeslump sum tax $60. If the MPS is 0.4, then thesavingsafter theimposition of lump sum taxwill be
A.$920
B.$760
C.$792
D.$866
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
