Business
Business, 31.03.2020 00:37, pauliavargas4184

9.Suppose a country's MPC is 0.8, and in this country, government seeks to boost real GDP by either increasing government purchases by $50 billion or by reducing taxes by the same amount. Instructions: Round your answers to one decimal place when appropriate. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. If it increases government purchases, real GDP will increase by $ billion, suggesting an expenditures multiplier of . If the government instead lowers taxes, real GDP will increase by $ billion, suggesting a tax multiplier of . b. Now suppose another country's MPC is 0.6, and in this country, government seeks to reduce real GDP by either decreasing government purchases by $50 billion or by raising taxes by the same amount.

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9.Suppose a country's MPC is 0.8, and in this country, government seeks to boost real GDP by either...

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