Q.

If the tax function is T= t0+t1y where t1 equals 1/3,and if the marginal propensity to consume out of disposable income is 3/4 , then the change in GDP oer unit change into t0 (∆Y/∆ t0) will be

A. -1
B. +1
C. -1.5
D. -2
Answer» C. -1.5
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