If the AD excess is $300 billion and the MPC is 0.75, (a) How much fiscal restraint

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If the AD excess is $300 billion and the MPC is 0.75,

(a) How much fiscal restraint is desired?
(b) By how much do income taxes have to be increased to get that restraint?

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The Macro Economy Today

ISBN: 978-1259291821

14th edition

Authors: Bradley R. Schiller, Karen Gebhardt

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Question Posted: Oct 31, 2023 03:30 AM

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If the AD excess is $300 billion and the MPC is 0.75, (a) How much fiscal restraint is desired? (b) By how much do income taxes have to be increased to get that restraint?
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If the AD excess is $300 billion and the MPC is 0.75, (a) How much fiscal restraint

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a Fiscal restraint is the use of fiscal policy to reduce aggregate demand It can be achieved by incr...View the full answer

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