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Suppose the MPC is 0.60. If the government increases expenditures by $200 billion, then by how much does GDP change? If the government decreases taxes
Suppose the MPC is 0.60. If the government increases expenditures by $200 billion, then by how much does GDP change? If the government decreases taxes by $200 billion, then by how much does GDP change?
Question 10 options:
| $300 billion and $180 billion |
| $300 billion and $300 billion |
| $500 billion and $300 billion |
| $500 billion and $500 billion |
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