Advanced Placement (AP), 17.05.2021 17:50, Bri0929
2. Assume that the MPC = 0.8 and the government increases spending by $100 billion, financing this spending with a $100 billion tax increase. Which of the following will be the likely effect of this action? A Real GDP will contract by S200 billion B. Real GDP will contract by $100 billion C. Real GDP will expand by $500 billion D. Real GDP will expand by S400 billion. E. Real GDP will expand by $100 billion,
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2. Assume that the MPC = 0.8 and the government increases spending by $100 billion, financing this s...
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