The government is considering the pros and cons of increasing government expenditure by a given amount vis- á- vis cutting taxes by the same amount. It knows that the MPC_d= 0.75. Calculate the two multipliers that are relevant to the decision.

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The Answer of The government is considering the pros and cons of increasing government expenditure by a given amount vis- á- vis cutting taxes by the same amount. It knows that the MPC_d= 0.75. Calculate the two multipliers that are relevant to the decision.

The Government Is Considering the Pros and Cons of Increasing