If the marginal propensity to consume was 0.7, how large would each of the following need to be in order to restore full-employment equilibrium? Instructions: Enter your responses rounded to one decimal place. a. A tax increase. $ b. A government spending cut. $ c. A cut in income transfers. $ billion billion billion

If the marginal propensity to consume was 0.7, how large would each of the following need to be in order to restore full-employment equilibrium? Instructions: Enter your responses rounded to one decimal place. a. A tax increase. $ b. A government spending cut. $ c. A cut in income transfers. $ billion billion 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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