If Congress adjusted the U.S. tax system so that the MPC was reduced, the: O economy would become more stable. O economy would become more inflation prone. O economy would become less stable. O stability of the economy would be unaffected.
If Congress adjusted the U.S. tax system so that the MPC was reduced, the: O economy would become more stable. O economy would become more inflation prone. O economy would become less stable. O stability of the economy would be unaffected.
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 13SQ
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![If Congress adjusted the U.S. tax system so that the MPC was reduced, the:
O economy would become more stable.
economy would become more inflation prone.
economy would become less stable.
stability of the economy would be unaffected.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad0f8abe-8ed4-4e27-b29c-dd581a2fdd06%2Fa451bc11-befd-4348-b0bb-359fc564f69a%2Flq8yivk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If Congress adjusted the U.S. tax system so that the MPC was reduced, the:
O economy would become more stable.
economy would become more inflation prone.
economy would become less stable.
stability of the economy would be unaffected.
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