If the marginal propensity to save in a closed economy is 0.25 and a lump-sum tax is imposed, the slope of the economy’s aggregate expenditures…
If the marginal propensity to save in a closed economy is 0.25 and a lump-sum tax is imposed, the slope of the economy’s aggregate expenditures schedule will be:Choose one answer. a. less than the slope before the tax. b. .25. c. .75. d. greater than the slope before the tax.
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