Question
The government increases taxes by $40 billion. If the marginal propensity to consume is 0.8, what will be the maximum impact on aggregate demand and
The government increases taxes by $40 billion. If the marginal propensity to consume is 0.8, what will be the maximum impact on aggregate demand and gross domestic product?
| $10 billion |
| $50 billion |
| $80 billion |
| $160 billion |
| $200 billion |
Use the graph to answer the question that follows.
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Economic Change In Asia Implications For Corporate Strategy And Social Responsibility
Authors: M Bruna Zolin, Bernadette Andreosso O'Callaghan, Jacques Jaussaud
1st Edition
1317286650, 9781317286653
