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?
Multiple Choice
- $2 billion
- $16 billion
- $9 billion
- $180 billion
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Business Statistics For Contemporary Decision Making
Authors: Ken Black
9th edition
978-1-119-3208, 9781119334781, 1119334780, 1119320895, 978-1119320890
