Question
Assume the marginal propensity to consume is 0.8. To offset a fall in income of 1,000 the government should a.raise taxes by $250. b.increase government
Assume the marginal propensity to consume is 0.8. To offset a fall in income of 1,000 the government should
a.raise taxes by $250.
b.increase government spending and taxes by 1,000.
c.increase taxes by $200.
d.cut taxes by $200.
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Cost Estimating
Authors: Rodney D. Stewart
2nd Edition
0471857076, 978-0471857075
