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Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0077332648Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0077332648 Exercise 22
Calculate the resulting change in GDP for each of the following MPCs when the government decreases taxes by $250 billion (change in tax equals -$250 billion).
a. The marginal propensity to consume (MPC) = 0.2.
b. The marginal propensity to consume (MPC) = 0.5.
c. The marginal propensity to consume (MPC) = 0.8.
a. The marginal propensity to consume (MPC) = 0.2.
b. The marginal propensity to consume (MPC) = 0.5.
c. The marginal propensity to consume (MPC) = 0.8.
Explanation
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Fiscal policy:
It is the policy of the ...
Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
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