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If taxes increases from $100 billion to $139 billion, and the MPC is 0.8, how much is the change in aggregate demand?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 8P

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If taxes increases from $100 billion to $139 billion, and the
MPC is 0.8, how much is the change in aggregate demand?

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