Suppose that the MPS = 0.2 and the government is interested in raising the level of output in the economy by $100 billion. Calculate how much the government would have to spend to achieve this objective.

Suppose that the MPS = 0.2 and the government is interested in raising the level of output in the economy by $100 billion. Calculate how much the government would have to spend to achieve this objective.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter15: Fiscal Policy

Section: Chapter Questions

Problem 4SQP

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Suppose that the MPS = 0.2 and the government is interested in raising the level of output in the economy by

$100 billion. Calculate how much the government would have to spend to achieve this objective.

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