Assume that taxes depend on income. The MPC is 0.75 and t is 0.2. If government spending increases b

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Assume that taxes depend on income. The MPC is 0.75 and t is 0.2. If government spending increases b

Assume that taxes depend on income. The MPC is 0.75 and t is 0.2. If government spending increases by $10 billion, the equilibrium level of output will increase by:
A) $25 billion.
B) $100 billion.
C) $50 billion.
D) $16.7 billion.

Textbook

Principles of Macroeconomics

Edition: 11^th

Authors: Case, Fair, Oster

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8 years ago

Perfect answer, thank you

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