Question: Suppose C = 4 0 0 + 0 . 8 ( Y - T ) where Y is income, T is tax. If tax increases

Suppose C=400+0.8(Y-T) where Y is income, T is tax. If tax increases by 100, what would happen to C ?
C decreases by 100
C decreases by 80
C increases by 80
C remains the same
Suppose C=400+0.8(Y-T) where Y is income, T is tax. If tax

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