a. When MPC = 0.75, if G and T both increase by $1,000, what will happen to

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a. When MPC = 0.75, if G and T both increase by $1,000, what will happen to equilibrium income?

b. By how much must T be increased (assuming G is increased by $1,000) so that equilibrium income does not increase?

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Economics Barrons Business Review Series

ISBN: 9781438008776

6th Edition

Authors: Walter J. Wessels

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Question Posted: Feb 18, 2024 04:00 AM

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a. When MPC = 0.75, if G and T both increase by $1,000, what will happen to

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a The balancedbudget multiplier is 1 so equilibrium income will go up 1000 b To n...View the full answer

Economics Barrons Business Review Series

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