taxes and government spending of $40 will: A) increase GDP by $80 B) decrease GDP by $40 C) decrease GDP by $80

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter11: Gross Domestic Product
Section: Chapter Questions
Problem 6SQP
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MPC = 5 a simultaneous decrease in both taxes and government spending of $40 will: A) increase GDP by $80 B) decrease GDP by $40 C) decrease GDP by $80 D) increase GDP by $40
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