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Where Marginal Propensity to Consume Is Denoted as MPC,consider the Following

Question 34

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Where marginal propensity to consume is denoted as MPC,consider the following:
Where marginal propensity to consume is denoted as MPC,consider the following: a.Assuming no crowding-out and MPC = 0.75,calculate the amount of government spending needed to bring this economy back to full-employment output. b.Assuming no crowding-out and that $10 billion would be needed to bring this economy back to full-employment output,calculate the MPC in this economy.
a.Assuming no crowding-out and MPC = 0.75,calculate the amount of government spending needed to bring this economy back to full-employment output.
b.Assuming no crowding-out and that $10 billion would be needed to bring this economy back to full-employment output,calculate the MPC in this economy.

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a.When the MPC = 0.75,the spending multi...

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