ZedWrekt1307 ZedWrekt1307

26-04-2024
Business

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Calculate the resulting change in GDP for each of the following MPCs when the government decreases taxes by $325 billion (change in taxes equals −$325 billion).
a. The marginal propensity to consume (MPC) = 0.2.
b. The marginal propensity to consume (MPC) = 0.5.
c. The marginal propensity to consume (MPC) = 0.8.

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