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Title: Suppose that Congress allocates $1 billion to clean up after hurricanes in 2016. It also raises ... Post by: Lola617 on Nov 21, 2018 Suppose that Congress allocates $1 billion to clean up after hurricanes in 2016. It also raises taxes by $1 billion to keep the deficit from growing. If the marginal propensity to consume is 0.9, what is the effect on equilibrium GDP?
A) GDP does not change. B) GDP increases by $10 billion. C) GDP increases by $900,000. D) GDP increases Answer: llion. Title: Suppose that Congress allocates $1 billion to clean up after hurricanes in 2016. It also raises ... Post by: Marostegui on Nov 21, 2018 Content hidden
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