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Please written by computer source Suppose the marginal propensity to consume (MPC) is either 0.65, 0.86, or 0.76. a. For each value of the MPC,
Please written by computer source
Suppose the marginal propensity to consume (MPC) is either 0.65, 0.86, or 0.76. a. For each value of the MPC, calculate the impact of a one-dollar decrease in taxes on GDP. Instructions: Enter your responses rounded to one decimal place. MPC Impact of a one-dollar decrease in taxes 0. 65 0. 86 0.76 b. For each value of the MPC, calculate the impact on GDP of a $250 million decrease in taxes. Instructions: Enter your responses rounded to one decimal place. MPC Impact on GDP 0. 65 $ 0.86 0. 76 c. Which of the following best describes the relationship between the MPC and the impact of a change in taxes on GDP. the larger the MPC, the larger the impact on GDP of a given change in taxes. the larger the MPC, the smaller the impact on GDP of a given change in taxes. the impact on GDP of a change in taxes does not depend on the size of the MPC. it is impossible to say unless we know the tax rateStep by Step Solution
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