Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help with this question: assuming that the aggregate marginal propensity to consume (MPC) out of disposable income is 0.65, in the income-expenditure model, a

please help with this question:

assuming that the aggregate marginal propensity to consume (MPC) out of disposable income is 0.65, in the income-expenditure model, a temporary tax cut in the total amount of $100 billion would result in a short-run change in GDP equal to how many billion of dollars?

please round your answer to two decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Business

Authors: John Daniels, Lee Radebaugh, Daniel Sullivan

15th edition

133457230, 978-0133457230

More Books

Students also viewed these Economics questions

Question

8. What are the costs of collecting the information?

Answered: 1 week ago