If a lump-sum tax of $40 billion is levied at each level of income and the MPC is 0.75, then the saving schedule will shift
A)upward by $10 billion.
B)upward by $25 billion.
C)downward by $10 billion.
D)downward by $25 billion.

Question

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The Answer of If a lump-sum tax of $40 billion is levied at each level of income and the MPC is 0.75, then the saving schedule will shift
A)upward by $10 billion.
B)upward by $25 billion.
C)downward by $10 billion.
D)downward by $25 billion.

If a Lump-Sum Tax of $40 Billion Is Levied at Each