If the AD excess is $400 billion and the MPC is 0.9, a) How much fiscal restraint is desired? b) By how much do income taxes have to be increased to get that restraint?
If the AD excess is $400 billion and the MPC is 0.9, a) How much fiscal restraint is desired? b) By how much do income taxes have to be increased to get that restraint?
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 8SQ
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If the AD excess is $400 billion and the MPC is 0.9,
a) How much fiscal restraint is desired?
b) By how much do income taxes have to be increased to get that restraint?
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