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In this economy, taxes are lump sum If MPS = 0.25, the government spending multiplier = 4 (Round your response to one decimal place) (Round your response to one decimal place and include a minus If MPS= 0.25, the tax multiplier = sign if necessary) If the MPC is 0.75, the government spending multiplier = 4 (Round your response to one decimal place) If the MPC is 0.75, the tax multipler=-3 (Round your response to one decimal place.) If the government spending mubplier is 2, the tax multiplier is (Round your response to one decimal Diace) If the tax multiplier is -6 5. the government spending multiplier is (Round your response to one decimal place) If government purchases and taxes are increased by $625 billion simultaneously, equilibrium output (income) will change by $ billion (Enter your response to the nearest billion dollars)

In this economy, taxes are lump sum If MPS = 0.25, the government spending multiplier = 4 (Round your response to one decimal place) (Round your response to one decimal place and include a minus If MPS= 0.25, the tax multiplier = sign if necessary) If the MPC is 0.75, the government spending multiplier = 4 (Round your response to one decimal place) If the MPC is 0.75, the tax multipler=-3 (Round your response to one decimal place.) If the government spending mubplier is 2, the tax multiplier is (Round your response to one decimal Diace) If the tax multiplier is -6 5. the government spending multiplier is (Round your response to one decimal place) If government purchases and taxes are increased by $625 billion simultaneously, equilibrium output (income) will change by $ billion (Enter your response to the nearest billion dollars)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In this economy, taxes are lump sum If MPS = 0.25, the government spending multiplier = 4 (Round your response to one decimal place) (Round your response to one decimal place and include a minus If MPS=025, the tax multiplier = sign if necessary) If the MPC is 0.75, the government spending multiplier = 4 (Round your response to one decimal place) If the MPC is 0.75, the tax multiplier = -3 (Round your response to one decimal place.) If the government spending multiplier is 2, the tax multiplier is (Round your response to one decimal place) If the tax multiplier is -65, the government spending multiplier is (Round your response to one decimal place) If government purchases and taxes are increased by $625 billion simultaneously, equilibrium output (income) will change by $ billion (Enter your response to the nearest billion dollars)
Transcribed Image Text:In this economy, taxes are lump sum If MPS = 0.25, the government spending multiplier = 4 (Round your response to one decimal place) (Round your response to one decimal place and include a minus If MPS=025, the tax multiplier = sign if necessary) If the MPC is 0.75, the government spending multiplier = 4 (Round your response to one decimal place) If the MPC is 0.75, the tax multiplier = -3 (Round your response to one decimal place.) If the government spending multiplier is 2, the tax multiplier is (Round your response to one decimal place) If the tax multiplier is -65, the government spending multiplier is (Round your response to one decimal place) If government purchases and taxes are increased by $625 billion simultaneously, equilibrium output (income) will change by $ billion (Enter your response to the nearest billion dollars)
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