Alien Advisor Our economists have redone their calculations. They now estimate that citizens in our country have an MPC of 0.80. We can fix the problem by decreasing GDP by 850. How much should we increase taxes?
Alien Advisor Our economists have redone their calculations. They now estimate that citizens in our country have an MPC of 0.80. We can fix the problem by decreasing GDP by 850. How much should we increase taxes?
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 12P
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Transcribed Image Text:Alien Advisor
Our economists have redone their
calculations. They now estimate that citizens
in our country have an MPC of 0.80. We can
fix the problem by decreasing GDP by 850.
How much should we increase taxes?
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