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Assume the MPC is 0.7. If government were to impose $20 billion of new taxes on household income, consumption spending would initially decrease by $14
Assume the MPC is 0.7. If government were to impose $20 billion of new taxes on household income, consumption spending would initially decrease by
- $14 billion.
- $20 billion.
- $60 billion.
- $6 billion.
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