Answer is complete but not entirely correct. Assume MPC = 0.75. If an initial fiscal restraint of $100 billion is desired, by how much must Instructions: Round your responses to two decimal places. a. government spending be reduced? $ 25.00 billion b. taxes be raised? 33.33 billion

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Answer is complete but not entirely correct.
Assume MPC = 0.75. If an initial fiscal restraint of $100 billion is desired, by how much must
Instructions:
Round your responses to two decimal places.
a. government spending be reduced?
$
25.00
billion
b. taxes be raised?
33.33 billion
Transcribed Image Text:Answer is complete but not entirely correct. Assume MPC = 0.75. If an initial fiscal restraint of $100 billion is desired, by how much must Instructions: Round your responses to two decimal places. a. government spending be reduced? $ 25.00 billion b. taxes be raised? 33.33 billion
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