If the MPC is 0.8,what decrease in government purchases would be called for to achieve a $50 billion decrease in AD?
A) $10 billion
B) $40 billion
C) $50 billion
D) $62.5 billion
Correct Answer:
Verified
Q22: What type of tax takes a lower
Q23: Which of the following is an example
Q24: What type of taxation is the gasoline
Q25: What type of taxes are the GST,PST,and
Q26: If the marginal propensity to consume is
Q28: What type of tax is the current
Q29: Which of the following is an example
Q30: If MPC is 0.8,what size effect would
Q31: If the marginal propensity to consume is
Q32: What effect would a $10 billion decrease
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents