If Congress adjusted the U.S.tax system so that the MPC was reduced, the
A)economy would become more inflation prone.
B)economy would become less stable.
C)stability of the economy would be unaffected.
D)economy would become more stable.

Question

Quizplus · Accepted Answer

Reducing the marginal propensity to consume (MPC) means people save more and spend less out of additional income, which can dampen economic fluctuations and make the economy more stable.

If Congress Adjusted the U