Consider the country of Sealand. The government wants to raise GDP by $60. It is known that MPS = 0.10. Which of the following could help the government achieve its objective? A. Reduce taxes collected by $6. B. need more information. OC. An increase in government expenditure by $12. D. All of the other answers are incorrect OE. An increase in government expenditure by $6.
Consider the country of Sealand. The government wants to raise GDP by $60. It is known that MPS = 0.10. Which of the following could help the government achieve its objective? A. Reduce taxes collected by $6. B. need more information. OC. An increase in government expenditure by $12. D. All of the other answers are incorrect OE. An increase in government expenditure by $6.
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section11.A: Graphical Treatment Of Taxes And Fiscal Policy
Problem 2TY
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Transcribed Image Text:Consider the country of Sealand. The government wants to raise GDP by $60. It is known that MPS = 0.10. Which of the following could help the government
achieve its objective?
A. Reduce taxes collected by $6.
B. need more information.
OC. An increase in government expenditure by $12.
D. All of the other answers are incorrect
OE. An increase in government expenditure by $6.
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