If the MPC in an economy is .75,government could shift the aggregate demand curve leftward by $60 billion by:
A) reducing government expenditures by $12 billion.
B) reducing government expenditures by $60 billion.
C) increasing taxes by $15 billion.
D) increasing taxes by $20 billion.
Correct Answer:
Verified
Q1: In a certain year the aggregate amount
Q2: Contractionary fiscal policy is so named because
Q4: The effect of a government surplus on
Q11: Discretionary fiscal policy is so named because
Q12: If the MPC in an economy is
Q12: Countercyclical discretionary fiscal policy calls for
A)surpluses during
Q13: Assume the economy is at full employment
Q17: In a certain year, the aggregate amount
Q20: An economist who favors smaller government would
Q29: Built-in stability means that
A)an annually balanced budget
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