Suppose that government policymakers decide that they will change taxes to raise aggregate output by $400 billion,

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Suppose that government policymakers decide that they will change taxes to raise aggregate output by $400 billion, and mpc = 0.5. By how much will taxes have to be changed?

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Question Posted: Aug 12, 2012 04:32 AM

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Suppose that government policymakers decide that they will change taxes to raise aggregate output by $400 billion,

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Taxes should be reduced by 400 billion because ...View the full answer

Economics of Money, Banking and Financial Markets

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