Question
An economy is experiencing a high rate of inflation. The government wants to reduce consumption by $18 billion to reduce inflationary pressure. The MPC is
An economy is experiencing a high rate of inflation. The government wants to reduce consumption by $18 billion to reduce inflationary pressure. The MPC is 0.9. By how much should the government raise taxes to achieve its objective?
- $2 billion
- $16 billion
- $9 billion
- $180 billion
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The Economics Of The Environment
Authors: Peter Berck, Gloria Helfand
1st Edition
978-0321321664, 0321321669
