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?
rev: 07_24_2020_QC_CS-221010
Multiple Choice
- $2 billion
- $16 billion
- $9 billion
- $180 billion
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The Economics of Women Men and Work
Authors: Francine D. Blau, Marianne A. Ferber, Anne E. Winkler
7th edition
978-0190670863, 019067086X, 132992817, 978-0132992817
