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Given the necessary increase in GDP of $500 and the MPC of 0.90, how much should we reduce taxes to get GDP to its natural

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Given the necessary increase in GDP of $500 and the MPC of 0.90, how much should we reduce taxes to get GDP to its natural rate?

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Look, I've been doing some research here and there and we've uncovered some evidence that the MPC might vary depending on how the money spent was earned. Our research indicates that, given a "tax refund check" mailed to their homes, our citizens would spend much more than they would of their regular income. In fact, their MPC would be 0.90. So, let's consider again our problem from before. Given the necessary increase in GDP of $500 and the MPC of 0.90, how much should we reduce taxes to get GDP to its natural rate? Enter a response then click Submit below

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