Business, 29.02.2020 03:40, miguelturner

According to the balanced budget multiplier, an increase in government spending of $10,000 that is financed by an increase of $10,000 in taxes will have what effect on the economy when MPC is 0.80?

a. Income will not change.
b. Income will increase by $8,000.
c. Income will increase by $50,000.
d. Income will increase by $10,000.

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According to the balanced budget multiplier, an increase in government spending of $10,000 that is f...