If the marginal propensity to consume (MPC) is 0.90, a $100 increase in taxes imposed by the government, other things being equal, will cause a decrease in GDP by 100 900 $1,000

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 11SQ
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If the marginal propensity to consume (MPC) is 0.90, a $100 increase in taxes imposed by the government, other
things being equal, will cause a decrease in GDP by
100
900
$1,000
Transcribed Image Text:If the marginal propensity to consume (MPC) is 0.90, a $100 increase in taxes imposed by the government, other things being equal, will cause a decrease in GDP by 100 900 $1,000
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