According to the Keynesian cross model, if the marginal propensity to consume is 0.75, by how much (i.e. how many billion dollars) will income increase if the government increases government purchases by $120 billion? Hint: Enter only the number of billions and no dollar sign in your response (e.g. enter only '100' in the case of $100 billion). billion
According to the Keynesian cross model, if the marginal propensity to consume is 0.75, by how much (i.e. how many billion dollars) will income increase if the government increases government purchases by $120 billion? Hint: Enter only the number of billions and no dollar sign in your response (e.g. enter only '100' in the case of $100 billion). billion
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 6SQ
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![According to the Keynesian cross model, if the marginal propensity to consume is 0.75, by how much (i.e. how many billion
dollars) will income increase if the government increases government purchases by $120 billion?
Hint: Enter only the number of billions and no dollar sign in your response (e.g. enter only '100' in the case of $100 billion).
billion](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97bb6018-d652-4c46-8580-c333015fbb9b%2F412269a1-aad0-4e84-824e-90171498a31f%2F01lsdsj_processed.png&w=3840&q=75)
Transcribed Image Text:According to the Keynesian cross model, if the marginal propensity to consume is 0.75, by how much (i.e. how many billion
dollars) will income increase if the government increases government purchases by $120 billion?
Hint: Enter only the number of billions and no dollar sign in your response (e.g. enter only '100' in the case of $100 billion).
billion
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