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Economics for Today 7th Edition by Irvin Tucker
Edition 7ISBN: 978-1133154457Economics for Today 7th Edition by Irvin Tucker
Edition 7ISBN: 978-1133154457 Exercise 7
If no fiscal policy changes are made, suppose the current aggregate demand curve will increase horizontally by $1,000 billion and cause inflation. If the marginal propensity-to consume ( MPC ) is 0.80, federal policymakers could follow Keynesian economics and restrain inflation by decreasing
A) government spending by $200 billion.
B) taxes by $10d billion.
C) taxes by $1,000 billion.
D) government spending by $1,000 billion.
A) government spending by $200 billion.
B) taxes by $10d billion.
C) taxes by $1,000 billion.
D) government spending by $1,000 billion.
Explanation
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Verified
Aggregate demand is obtained by multiply...
Economics for Today 7th Edition by Irvin Tucker
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