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Title: Suppose the president is successful in passing a $10 billion tax increase. Assume that taxes are ... Post by: Lola617 on Nov 21, 2018 Suppose the president is successful in passing a $10 billion tax increase. Assume that taxes are fixed, the economy is closed, and the marginal propensity to consume is 0.8. What happens to equilibrium GDP?
A) There is a $50 billion increase in equilibrium GDP. B) There is a $50 billion decrease in equilibrium GDP. C) There is a $40 billion increase in equilibrium GDP. D) There is a $40 billion decrease in eqAnswer: m GDP. Title: Suppose the president is successful in passing a $10 billion tax increase. Assume that taxes are ... Post by: lakeisha on Nov 21, 2018 Content hidden
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