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Assume MPC = 0.75. If an initial fiscal restraint of $100 billion is desired, by how much must (a)Government spending be reduced? (b)Taxes be raised?
Assume MPC = 0.75. If an initial fiscal restraint of $100 billion is desired, by how much must (a)Government spending be reduced?
(b)Taxes be raised? 25 billion, because of the multiplier effect.
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The Worldly Philosophers The Lives, Times And Ideas Of The Great Economic Thinkers
Authors: Robert L Heilbroner
7th Edition
068486214X, 9780684862149
