Assuming a closed economy where autonomous consumption is $12 T, investment is $3 T, government spending is $2 T, and the MPC = 0.85, if there was a $1.5 T recessionary gap, what is the amount that taxes need to decrease by to fill the gap? O a. $489.1 billion O b. $164.9 billion Oc. $386.8 billion Od. $264.7 billion

Assuming a closed economy where autonomous consumption is $12 T, investment is $3 T, government spending is $2 T, and the MPC = 0.85, if there was a $1.5 T recessionary gap, what is the amount that taxes need to decrease by to fill the gap? O a. $489.1 billion O b. $164.9 billion Oc. $386.8 billion Od. $264.7 billion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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