10. In the Keynesian Model where the marginal propensity to consume is 0.75, a $120 rise in government purchases of goods and services will have no impact on equilibrium output if accompanied by a $600 fall in tax revenue and a $120 fall in transfers to the elderly. This is correct. a $160 fall in transfers to the poor. a $120 fall in tax revenue. a $90 rise in tax revenue.
10. In the Keynesian Model where the marginal propensity to consume is 0.75, a $120 rise in government purchases of goods and services will have no impact on equilibrium output if accompanied by a $600 fall in tax revenue and a $120 fall in transfers to the elderly. This is correct. a $160 fall in transfers to the poor. a $120 fall in tax revenue. a $90 rise in tax revenue.
Chapter1: Making Economics Decisions
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![10. In the Keynesian Model where the marginal propensity to consume is 0.75, a $120 rise in
government purchases of goods and services will have no impact on equilibrium output if
accompanied by
a $600 fall in tax revenue and a $120 fall in transfers to the elderly.
a $160 fall in transfers to the poor.
a $120 fall in tax revenue.
a $90 rise in tax revenue.
This is correct.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F211fd0d2-45cd-4603-b99f-222084379316%2F9118756f-71f5-466a-9e1d-f39ab7b57811%2Fjd8auyj1f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:10. In the Keynesian Model where the marginal propensity to consume is 0.75, a $120 rise in
government purchases of goods and services will have no impact on equilibrium output if
accompanied by
a $600 fall in tax revenue and a $120 fall in transfers to the elderly.
a $160 fall in transfers to the poor.
a $120 fall in tax revenue.
a $90 rise in tax revenue.
This is correct.
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