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2. Suppose economic managers of the US economy wish to expand output by $10 billion. The managers know that the marginal propensity to consume is

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2. Suppose economic managers of the US economy wish to expand output by $10 billion. The managers know that the marginal propensity to consume is .5 and that only the marginal propensity to consume detemiines the value of the multiplier. Given these data and the goal of expanding output by $10 billion, by how much should the government expand aggregate demand through the use of fiscal policy? Describe two different types of fiscal policy that might accomplish this goal

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