Chapter9: The Keynesian Model In Action
Section: Chapter Questions
Problem 13SQ
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Question
![If the MPC in an economy is 0.80, government could close a recessionary expenditure gap of $100 billion
by cutting taxes by
Multiple Choice
• $125 billion.
• $100 billion.
• $80 billion.
• $20 billion.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0da4a194-4534-41fc-9580-415cbad85e42%2F7c400d21-6115-48ed-b0ff-2b7f49c77454%2Fi2kffmv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If the MPC in an economy is 0.80, government could close a recessionary expenditure gap of $100 billion
by cutting taxes by
Multiple Choice
• $125 billion.
• $100 billion.
• $80 billion.
• $20 billion.
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