If the marginal propensity to consume is 0.75, how much would government spending have to rise to
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If the marginal propensity to consume is 0.75, how much would government spending have to rise to increase output by $1000 billion? How much will taxes need to decrease to increase output by $1000 billion?
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The change in output Y is given as the change in spending G multiplied by 11 mpc Thus 1...View the full answer
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Related Book For
The Economics of Money Banking and Financial Markets
ISBN: 978-0321785701
5th Canadian edition
Authors: Frederic S. Mishkin, Apostolos Serletis
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