Question: If the MPC was 0.90, (a) How much did consumer spending decline initially in response to the 2013 expiration of the payroll tax cut (essentially,
If the MPC was 0.90,
(a) How much did consumer spending decline initially in response to the 2013 expiration of the payroll tax cut (essentially, a tax hike to consumers)? (News Wire "Fiscal Restraint")?
(b) What was the ultimate decline in aggregate demand after all multiplier effects?
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