Question
If the AD excess is $360 billion and the MPC is 0.80, Instructions: Round your responses to one decimal place. a. how much fiscal restraint
If the AD excess is $360 billion and the MPC is 0.80,
Instructions: Round your responses to one decimal place.
a. how much fiscal restraint is desired?
$ billion
b. by how much do income taxes have to be increased to get that restraint?
$ billion
c. alternatively, how much should government reduce its spending to achieve the target?
$ billion
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
6th edition
73523143, 73523149, 978-0073523149
