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Lola617 Lola617
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5 years ago
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.
Textbook 
InMacro

InMacro


Edition: 1st
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MarosteguiMarostegui
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5 years ago
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Lola617 Author
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5 years ago
This site is awesome
jakechambo3
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
fxinternational
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2 hours ago
Brilliant ツ
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