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6. Suppose there is a contractionary gap in the economy equal to 60 billion dollars. If the MPC is .75 and there are no taxes
6. Suppose there is a contractionary gap in the economy equal to 60 billion dollars. If the MPC is .75 and there are no taxes or imports, what is the government spending change necessary to close this gap? Assume no crowding-out. How would the numerical answer you came up with would change (bigger, smaller, unchanged), if we were to assume that there would be some crowding-out? Explain
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