Magnitude of change in tax levels

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If the marginal propensity to consume (MPC) is 0.8, then what should the magnitude of change in the tax levels be when the government wants to increase the national income by $3,000? The tax levels should be decreased by $12,000. The tax levels should be increased by $24,000. The tax levels should be decreased by $24,000. The tax levels should be increased by $12,000. The tax levels would have no role and should remain the same.

Reference no: EM133479624

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