Suppose that for every $10 billion decrease in GDP, tax revenue would fall by $1 billion. With a budget deficit of $200 billion and a multiplier of 4 what will be the new budget deficit if Congress cuts government spending by $100 billion.

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The Answer of Suppose that for every $10 billion decrease in GDP, tax revenue would fall by $1 billion. With a budget deficit of $200 billion and a multiplier of 4 what will be the new budget deficit if Congress cuts government spending by $100 billion.

Suppose That for Every $10 Billion Decrease in GDP, Tax