True False and a 1 sentence explaination please thanks. D) If we assume marginal propensity to consume (b) is 80 % and marginal tax rate (t)is 15 %, and marginal propensity to import is 18 %, then 25 billion increase government expenditure will increase national income by 100 billion.

True False and a 1 sentence explaination please thanks. D) If we assume marginal propensity to consume (b) is 80 % and marginal tax rate (t)is 15 %, and marginal propensity to import is 18 %, then 25 billion increase government expenditure will increase national income by 100 billion.

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

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True False and a 1 sentence explaination please thanks.

D) If we assume marginal propensity to consume (b) is 80 % and marginal tax rate (t)is 15 %, and marginal propensity to import is 18 %, then 25 billion increase government expenditure will increase national income by 100 billion.

Definition Definition Monetary value of all goods and services produced in an economy during a financial year. National income also refers to the total income earned by the factors of production during a financial year.

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