Washington, D.C.-The U.S. Congress gave final approval to President Obama's $787 billion stimulus package yesterday. The...

 

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Washington, D.C.-The U.S. Congress gave final approval to President Obama's $787 billion stimulus package yesterday. The $787 billion package is intended to give a boost to the economy, lifting it out of the current recession. At the heart of the package is a half-trillion increase in spending for infrastructure construction, high-speed rail projects, increased unemployment benefits, and scores of other government programs. The package will pump $185 billion into the economy this year and $399 billion next year. Democrats say the plan will save or create 3.5 million jobs. The Senate passed the measure by a vote of 60-38 with the support of three Republicans. Earlier, the House passed the bill by a vote of 246-183 with no Republican support. Source: News accounts of February 13-15, 2009. If consumers had an MPC of 0.90, by how much would aggregate demand have eventually increased with Obama's spending stimulus, assuming the stimulus was entirely government spending? billion Washington, D.C.-The U.S. Congress gave final approval to President Obama's $787 billion stimulus package yesterday. The $787 billion package is intended to give a boost to the economy, lifting it out of the current recession. At the heart of the package is a half-trillion increase in spending for infrastructure construction, high-speed rail projects, increased unemployment benefits, and scores of other government programs. The package will pump $185 billion into the economy this year and $399 billion next year. Democrats say the plan will save or create 3.5 million jobs. The Senate passed the measure by a vote of 60-38 with the support of three Republicans. Earlier, the House passed the bill by a vote of 246-183 with no Republican support. Source: News accounts of February 13-15, 2009. If consumers had an MPC of 0.90, by how much would aggregate demand have eventually increased with Obama's spending stimulus, assuming the stimulus was entirely government spending? billion

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Total stimulus amount approved by Congress 787 billion Amount to be spent in 2009 185 billion ... View the full answer