If the MPC is 0.80 and the government increases transfer payments by $45 billion,then the initial fiscal stimulus will equal

Name: If the MPC is 0.80 and the government increases transfer payments by $45 billion,then the initial fiscal stimulus will equal
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The initial fiscal stimulus from an increase in transfer payments is calculated by multiplying the change in transfer payments by the marginal propensity to consume (MPC). Here, $45 billion * 0.80 = $36 billion.

If the MPC Is 0