subject
Mathematics, 03.11.2020 23:20 taygotclout4786

Suppose that the economy is experiencing a recession with an estimated recessionary gap of $10 billion. Congress is considering the use of fiscal policy to ease the recession, but due to current political sentiments, it has determined that the maximum spending increase the government is willing to support is $3 billion. It wants to make up the remainder of the recessionary gap using tax cuts. If a spending increase of $3 billion is approved and the MPC is 0.6, by how much will taxes need to be reduced to close the remainder of the recessionary gap?

ansver
Answers: 1

Another question on Mathematics

question
Mathematics, 21.06.2019 12:50
What's the difference between: x≥0 and nonnegative integer. ?
Answers: 2
question
Mathematics, 21.06.2019 14:00
How many grams must be adde to 970g to make 1 and a half kg
Answers: 2
question
Mathematics, 21.06.2019 23:00
Evaluate each expression. determine if the final simplified form of the expression is positive or negative -42 (-4)2 42
Answers: 2
question
Mathematics, 21.06.2019 23:40
Which of the following is best modeled using a linear equation y=ax+b, where a is less than 0?
Answers: 2
You know the right answer?
Suppose that the economy is experiencing a recession with an estimated recessionary gap of $10 billi...
Questions
question
Advanced Placement (AP), 09.12.2020 01:00
question
Mathematics, 09.12.2020 01:00
question
Mathematics, 09.12.2020 01:00
question
English, 09.12.2020 01:00
question
Mathematics, 09.12.2020 01:00
Questions on the website: 13722361