Social Studies, 13.04.2021 23:30 ashbela16
With a marginal propensity to consume of 0.6, which policy would cause a fiscal stimulus of $100 billion?
a)Increase government spending by $40 billion.
b)Cut taxes by $100 billion
c) increase government spending by $50 billion and decrease taxes by $100 billion.
d)Increase government spending by $20 billion.
Answers: 1
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With a marginal propensity to consume of 0.6, which policy would cause a fiscal stimulus of $100 bil...
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