In an economy, the government wants to decrease aggregate demand by $48 billion at each price level to decrease real gdp and control demand-pull inflation. if the mps is 0.25, then it could
(a) decrease government spending by $16 billion
(b) increase taxes by $16 billion
(c) decrease government spending by $10 billion
(d) increase taxes by $24 billion
Answers: 1
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In an economy, the government wants to decrease aggregate demand by $48 billion at each price level...
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