Suppose that the population includes two kinds of people: those with high propensity to consume and those with low propensity to consume. Suppose the transfer policy increases taxes on those with low propensity to consume to pay for transfer to people with high propensity to consume. This transfer policy will:

a. leave the equilibrium output unchanged

b. decrease the equilibrium output

c. have an ambiguous effect on the equilibrium output

d. increase the equilibrium output

e. All of the answers here are incorrect