If the marginal propensity to consume was 0.8, how large would each of the following need to
Question:
If the marginal propensity to consume was 0.8, how large would each of the following need to be in order to restore a full-employment equilibrium in Figure 11.7?
(a) A tax increase.
(b) A government spending cut.
(c) A cut in income transfers.
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a 100billion b 80billion c 100billion Feedback For part...View the full answer
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Related Book For
The Macro Economy Today
ISBN: 978-1259291821
14th edition
Authors: Bradley R. Schiller, Karen Gebhardt
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