Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 72
If the MPC is 0.71 and taxes decrease by $5,103, holding all else constant, real GDP will change by _____ according to the multiplier effect. Please round to 2 decimal places. Be sure to include a negative sign (-) if it is a decrease and do not include a dollar sign ($) when answering.
Question 73
Assume a government starts with zero debt. This government then runs an annual deficit for 29 years of $4,511. At the end of those 29 years, what would be amount of the government debt? Please round to 2 decimal places if needed. Be sure to include a negative sign (-) if it is a decrease and do not include a dollar sign ($) when answering.
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