Multiple Choice
An economy is experiencing a high rate of inflation.The government wants to reduce consumption by $36 billion to reduce inflationary pressure.The MPC is 0.75.By how much should the government raise taxes to achieve its objective?
A) $6 billion
B) $9 billion
C) $12 billion
D) $16 billion
Correct Answer:
Verified
Correct Answer:
Verified
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