If the government wishes to increase GDP by $1,200b,and the MPC is 0.8,it should:
A) increase taxes by $240b.
B) decrease taxes by $240b.
C) increase taxes by $300b.
D) decrease taxes by $300b.
Correct Answer:
Verified
Q89: Transfer payments:
A) are payments from government accounts
Q98: Payments from government accounts to individuals for
Q101: Economists usually suggest that the best way
Q102: During a recession, government deficits can grow
Q107: A major distinction to be made is
Q125: If the government wishes to increase GDP
Q127: Which country in the world has a
Q128: If the MPC is 0.5,and the government
Q131: A budget deficit is:
A)the amount of money
Q133: If the government wishes to decrease GDP
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