Suppose the marginal propensity to consume is 0.75 and the government spending multiplier is 4. If the government decreases its purchases by $100 million, the aggregate demand curve will shift to the by $ million. If the government increases income taxes by $100 million, the aggregate demand curve will shift to the by $ million.
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Suppose the marginal propensity to consume is 0.75 and the government spending multiplier is 4. If t...
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