Question: Question 6 2 pts Consider a simple Keynesian model with taxation. Suppose the marginal rate of tax is 0.2 and the marginal propensity to consume

 Question 6 2 pts Consider a simple Keynesian model with taxation.

Question 6 2 pts Consider a simple Keynesian model with taxation. Suppose the marginal rate of tax is 0.2 and the marginal propensity to consume is 0.5. Then a decrease in investment expenditure of 100 units will: 0 Decrease equilibrium output by approximately 150 units 0 Increase equilibrium output by approximately 150 units 0 Increase equilibrium output by approximately 167 units 0 None of the above

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