If the MPC for an economy is 0.90,a $4 billion increase in taxes will ultimately cause consumption to decrease by
A) $40 billion.
B) $36 billion.
C) $4.4 billion.
D) $3.6 billion.
Correct Answer:
Verified
Q50: Assume the AS curve is upward-sloping.If the
Q51: If the desired fiscal restraint is $80
Q52: Suppose the government decides to increase taxes
Q53: What happens to aggregate demand when government
Q54: Assume the MPC is 0.75,taxes increase by
Q56: Which of the following would cause the
Q57: Fiscal restraint is defined as
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Q59: The desired fiscal restraint is equal to
A)Excess
Q60: Assume the economy is at full employment
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