Answered: If the MPC in an economy is 0.80,…

If the MPC in an economy is 0.80, government could close a recessionary expenditure gap of $100 billion by cutting taxes by

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter19: The Keynesian Model In Action

Section: Chapter Questions

Problem 13SQ

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Question

If the MPC in an economy is 0.80, government could close a recessionary expenditure gap of $100 billion
by cutting taxes by
Multiple Choice
• $125 billion.
• $100 billion.
• $80 billion.
• $20 billion.

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