Question: Let's consider a simple macro model where there is no foreign sector. a marginal propensity to save of mps = 0 . 1 ,

Let's consider a simple macro model where there is no foreign sector. a marginal propensity to save of mps = 0.1, and a marginal income tax rate of t = 1/3. If autonomous saving

decreases by 300, which of the following is true?

  total consumption will increase by 300

  national income will increase by 500

  disposable income will increase by 750

  the budget surplus will increase by 250

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