Question: If the govt. wants to decrease RGDP by $40 billion and MPC equals 0.8, how much must the govt. increase taxes?

If the govt. wants to decrease RGDP by $40 billion and MPC equals 0.8, how much must the govt. increase taxes?

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Ans The increase in taxes would be 8 billion Explanation The total of MPC and MPS is ... View full answer

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