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Business, 03.12.2020 20:10 ashleyaparicio876

The marginal propensity to expend is 0.5 and there is a recessionary gap of $200. What fiscal policy would you recommend? (Assume mpe mpc) A. Expansionary fiscal policy, increase government expenditures by $100, or cut taxes by $200.
B. Contractionary fiscal policy, decrease government expenditures by $200, or cut taxes by $100
C. Contractionary fiscal policy, decrease govenment expenditures by $100, or cut taxes by $200.
D. Expansionary fiscal policy, increase government expenditures by $200, or cut taxes by $100.

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The marginal propensity to expend is 0.5 and there is a recessionary gap of $200. What fiscal policy...
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