Question 7If the MPC in the economy is 0.75, govemment could shift the aggregate demand curve rightward by $30 billion by cutting taxes by $10 billion.O A. true.O B. false. Question 8Assume the economy's consumption and saving schedules simultaneously shift downward. This must be the result of:O A. An increase in personal taxes.O B. An increase in household wealth.OC. The expectation of a recessionO D. An increase in disposable income.

7. Here, it is given that the MPC is 0.75. the value of MPC can be used to compute the spending…

Answered: Question 7 If the MPC in the economy is…

Question 7 If the MPC in the economy is 0.75, govemment could shift the aggregate demand curve rightward by $30 billion by cutting taxes by $10 billion. O A. true. O B. false.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 1TY

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