An economy Is experiencing a high rate of Inflation. The government wants to reduce consumption by $24 billion to reduce Inflationary pressure. The MPC IS 0.8. By how much should the government ralse taxes achleve Its objective? Multiple Choice $6 billion $19 billion $5 billion $120 billion

An economy Is experiencing a high rate of Inflation. The government wants to reduce consumption by $24 billion to reduce Inflationary pressure. The MPC IS 0.8. By how much should the government ralse taxes achleve Its objective? Multiple Choice $6 billion $19 billion $5 billion $120 billion

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 1.4P

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An economy Is experiencing a high rate of Inflation. The government wants to reduce consumption by $24 billion to reduce Inflationary pressure. The MPC Is 0.8. By how much should the government ralse taxes to achleve Its objective?
Multiple Cholce
$6 billion
$19 billion
$5 billion
$120 billion

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