Suppose the marginal propensity to consume (MPC) is either 0.75, 0.96, or 0.62.   a. For each value of the MPC, calculate the impact of a one-dollar decrease in taxes on GDP.   Instructions: Enter your responses rounded to one decimal place.   MPC Impact of a one-dollar decrease in taxes 0.75   0.96   0.62     b. For each value of the MPC, calculate the impact on GDP of a $250 million decrease in taxes.   Instructions: Enter your responses rounded to one decimal place.   MPC Impact on GDP 0.75 $   0.96 $   0.62 $

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