Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Washington, D.C.-The U.S. Congress gave final approval to President Obama's $787 billion stimulus package yesterday. The $787 billion package is intended to give a
Washington, D.C.-The U.S. Congress gave final approval to President Obama's $787 billion stimulus package yesterday. The $787 billion package is intended to give a boost to the economy, lifting it out of the current recession. At the heart of the package is a half-trillion increase in spending for infrastructure construction, high-speed rail projects, increased unemployment benefits, and scores of other government programs. The package will pump $185 billion into the economy this year and $399 billion next year. Democrats say the plan will save or create 3.5 million jobs. The Senate passed the measure by a vote of 60-38 with the support of three Republicans. Earlier, the House passed the bill by a vote of 246-183 with no Republican support. Source: News accounts of February 13-15, 2009. If consumers had an MPC of 0.90, by how much would aggregate demand have eventually increased with Obama's spending stimulus, assuming the stimulus was entirely government spending? billion
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Total stimulus amount approved by Congress 787 billion Amount to be spent in 2009 185 billion ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started