The last personal savings rate recorded by the Federal Reserve database was 2.4%. Assume your average tax rate is 35%. The Federal Government recently spent $1.2T on “infrastructure”. Assuming this stands, answer the following question. 1. How much disposable income would the third iteration of this spending generate? 1.1A. What is the estimated increase in aggregate demand as a result of this bill assuming no tax increase?

The last personal savings rate recorded by the Federal Reserve database was 2.4%. Assume your average tax rate is 35%. The Federal Government recently spent $1.2T on “infrastructure”. Assuming this stands, answer the following question. 1. How much disposable income would the third iteration of this spending generate? 1.1A. What is the estimated increase in aggregate demand as a result of this bill assuming no tax increase?

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section: Chapter Questions

Problem 11SQ

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