Question
Hello I have an economics question and have provided the question via image. I need help with Suppose the government of Nettland wants to finance
Hello I have an economics question and have provided the question via image. I need help with Suppose the government of Nettland wants to finance a $1 million increase in government spending by raising taxes. The tax increase decreases total consumers' disposable incomes by $ 18 million? is that correct? and If consumer spending changes by 80% of the change in consumers' income, then the net effect of the increase in government spending will be a $0.2 million decrease? is that correct? Please correct me if I am wrong here are the images below.
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