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

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If the marginal propensity to consume is 0.75, how much would government spending have to rise to increase output by $1000 billion? How much will taxes need to decrease to increase output by $1000 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: Nov 09, 2018 12:36 PM

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

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The change in output Y is given as the change in spending G multiplied by 11 mpc Thus 1...View the full answer

The Economics of Money Banking and Financial Markets

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