Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

تمرين 22

Calculate the resulting change in GDP for each of the following MPCs when the government decreases taxes by $250 billion (change in tax equals -$250 billion).
a. The marginal propensity to consume (MPC) = 0.2.
b. The marginal propensity to consume (MPC) = 0.5.
c. The marginal propensity to consume (MPC) = 0.8.