Question: If MPS = 0 . 5 0 , what change in fiscal policy can close an inflationary gap of $ 6 0 billion? A $

If MPS=0.50, what change in fiscal policy can close an inflationary gap of $60 billion?
A $60 billion increase in government spending
A $30 billion decrease in taxes
A $60 billion increase in taxes
A $12 billion decrease in government spending
If MPS = 0 . 5 0 , what change in fiscal policy

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