Suppose that the marginal propensity to consume is 0.75.
a. If the government decreases spending by $500 billion,what is the change in output?
b. If the government decreases taxes by $500 billion,what is the change in output?
c. If the government decreases spending by $500 billion and at the same time decreases taxes by $500 billion,what is the change in output?

Question

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The Answer of Suppose that the marginal propensity to consume is 0.75.
a. If the government decreases spending by $500 billion,what is the change in output?
b. If the government decreases taxes by $500 billion,what is the change in output?
c. If the government decreases spending by $500 billion and at the same time decreases taxes by $500 billion,what is the change in output?

Suppose That the Marginal Propensity to Consume Is 0