If the MPC is 4/5, and policy makers decide to increase taxes by $250 billion in order to slow an overheated economy, GDP changes by: an amount that differs from all of the listed options. O $1,000 billion. O $1,250 billion. +$1,000 billion. O +$1,250 billion.

If the MPC is 4/5, and policy makers decide to increase taxes by $250 billion in order to slow an overheated economy, GDP changes by: an amount that differs from all of the listed options. O $1,000 billion. O $1,250 billion. +$1,000 billion. O +$1,250 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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Question

If the MPC is 4/5, and policy makers decide to increase taxes by $250 billion in order to
slow an overheated economy, GDP changes by:
an amount that differs from all of the listed options.
O -$1,000 billion.
O -$1,250 billion.
+$1,000 billion.
O +$1,250 billion.

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