Given the marginal propensity to consume as 0.75 and the proportional tax function as t = 20

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Given the marginal propensity to consume as 0.75 and the proportional tax function as t = 20 per cent = 0.2.

Find the change which will occur in the equilibrium level of income, when there is

(a) An increase in government expenditure by 50.

(b) An increase in autonomous tax by 30.

(c) An increase in transfers by 20.

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Managerial Economics

ISBN: 9788131775622

1st Edition

Authors: Vanita Agarwal

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Question Posted: Nov 07, 2024 04:00 AM

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Given the marginal propensity to consume as 0.75 and the proportional tax function as t = 20

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Managerial Economics

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