Assume MPC = 0.70. If an initial fiscal restraint of $150 billion is desired, by how much must a. Government spending be reduced? b. Taxes be raised? billion billion

Economics (MindTap Course List)
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Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
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Assume MPC = 0.70. If an initial fiscal restraint of $150 billion is desired, by how much must
a. Government spending be reduced?
b. Taxes be raised?
billion
billion
Transcribed Image Text:Assume MPC = 0.70. If an initial fiscal restraint of $150 billion is desired, by how much must a. Government spending be reduced? b. Taxes be raised? billion billion
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