History, 13.05.2021 01:20 jackiediaz
Assume that the marginal propensity to consume (MPC) is 0.80. The government
decides to increase taxes by $35 million. What will be the impact on gross
domestic product (GDP)?
Select the correct response:
GDP will increase by $140 million.
GDP will decrease by $175 million.
GDP will decrease by $35 million.
GDP will increase by $175 million.
GDP will decrease by $140 million.
Answers: 2
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Assume that the marginal propensity to consume (MPC) is 0.80. The government
decides to increase ta...
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