Aggregate Demand I: Bullding the IS–LM Model – Quick Quiz Problem 2. According to the Keynesian cross model, if the marginal propensity to consume is 2/3, a cut in taxes of $120 billion increases equilibrium income by S160 billion. S180 billion. $240 billion $360 billion.

Aggregate Demand I: Bullding the IS–LM Model – Quick Quiz Problem 2. According to the Keynesian cross model, if the marginal propensity to consume is 2/3, a cut in taxes of $120 billion increases equilibrium income by S160 billion. S180 billion. $240 billion $360 billion.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 2CQQ

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Aggregate Demand I: Bullding the IS–LM Model – Quick Quiz Problem
2. According to the Keynesian cross model, if the marginal propensity to consume is 2/3, a cut in taxes of $120 billion
increases equilibrium income by
S160 billion.
S180 billion.
$240 billion
$360 billion.

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