What would be the effect of a cut in taxes of $100 billion on the economy if the marginal propensity to consume were .9? Explain why this policy is much different from simply having the government initiate a $100 billion spending program. Support your answer with specific calculations.

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The Answer of What would be the effect of a cut in taxes of $100 billion on the economy if the marginal propensity to consume were .9? Explain why this policy is much different from simply having the government initiate a $100 billion spending program. Support your answer with specific calculations.

What Would Be the Effect of a Cut in Taxes