Suppose the marginal propensity to consume (MPC) is either 0.75, 0.96, or 0.62. a. For each value of the MPC, calculate the impact of a one-dollar decrease in taxes on GDP. Instructions: Enter your responses rounded to one decimal place. MPC Impact of a one-dollar decrease in taxes 0.75 0.96 0.62 b. For each value of the MPC, calculate the impact on GDP of a $250 million decrease in taxes. Instructions: Enter your responses rounded to one decimal place. MPC Impact on GDP 0.75 $ 0.96 $ 0.62 $
Suppose the marginal propensity to consume (MPC) is either 0.75, 0.96, or 0.62. a. For each value of the MPC, calculate the impact of a one-dollar decrease in taxes on GDP. Instructions: Enter your responses rounded to one decimal place. MPC Impact of a one-dollar decrease in taxes 0.75 0.96 0.62 b. For each value of the MPC, calculate the impact on GDP of a $250 million decrease in taxes. Instructions: Enter your responses rounded to one decimal place. MPC Impact on GDP 0.75 $ 0.96 $ 0.62 $
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
Problem 4TY
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Suppose the marginal propensity to consume (MPC) is either 0.75, 0.96, or 0.62.
a. For each value of the MPC, calculate the impact of a one-dollar decrease in taxes on
Instructions: Enter your responses rounded to one decimal place.
MPC | Impact of a one-dollar decrease in taxes |
0.75 | |
0.96 | |
0.62 |
b. For each value of the MPC, calculate the impact on GDP of a $250 million decrease in taxes.
Instructions: Enter your responses rounded to one decimal place.
MPC | Impact on GDP |
0.75 | $ |
0.96 | $ |
0.62 |
$ |
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