If the marginal propensity to consume is 0.75, by how much would government spending have to rise

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If the marginal propensity to consume is 0.75, by how much would government spending have to rise to increase output by $1,000 billion? By how much would taxes need to decrease to increase output by $1,000 billion?

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The Economics of Money Banking and Financial Markets

ISBN: 978-0321785701

5th Canadian edition

Authors: Frederic S. Mishkin, Apostolos Serletis

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Question Posted: Mar 13, 2018 08:47 AM

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If the marginal propensity to consume is 0.75, by how much would government spending have to rise

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The marginal propensity to consume is 075 The amount of increase required in au...View the full answer

The Economics of Money Banking and Financial Markets

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