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5 percent increase in corporate income tax rates will, other things remaining the same: A. Decrease...

5 percent increase in corporate income tax rates will, other things remaining the same:

A. Decrease the average propensity to consume
B. Shift the marginal efficiency of investment (MEI) curve to the left
C. Shift the MEI curve to the right
D. Have no effect on the MEI curve
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Answer #1

OPTION B IS CORRECT

SHIFT THE MARGINAL EFFICIENCY OF INVESTMENT (MEI) CURVE TO THE LEFT

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