Suppose the government increases education spending by $20 billion. How much additional consumption will this increase cause?

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Suppose the government increases education spending by $20 billion. How much additional consumption will this increase cause? Show your work.

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Essentials of Economics

ISBN: 978-1259235702

10th edition

Authors: Bradley Schiller, Karen Gebhardt

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Question Posted: Apr 12, 2012 05:47 AM

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Suppose the government increases education spending by $20 billion. How much additional consumption will this increase cause?

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We are assuming an MPC of 075 the Additional government education spe...View the full answer

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