38. Assume the United States is experiencing a recessionary gap of $24 billion, and the marginal propensity
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38. Assume the United States is experiencing a recessionary gap of $24 billion, and the marginal propensity to consume is 0.75. The government decides it is prudent to cut taxes. What is the minimum amount taxes should be cut to close the recessionary gap? (A) $24 billion (B) $20 billion (C) $15 billion (D) $8 billion (E) $6 billion
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Jehal Shah
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