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MC Gu. 33-206 (Algo) An economy is experiencing a high... An economy is experiencing a high rate of inflation. The government wants to reduce consumption
MC Gu. 33-206 (Algo) An economy is experiencing a high... An economy is experiencing a high rate of inflation. The government wants to reduce consumption by $24 billion to reduce inflationary pressure. The MPC is 0.8. By how much should the government raise taxes to achieve its objective? Multiple Choice 0 $6 billion $19 billion $5 billion OOO $120 billion
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