U.S. Congress Gives Final Approval to $787 Billion Stimulus Feb. 13 (Bloomberg)-The U.S. Congress gave final approval to President Obama's S787 billion economic stimulus package in hopes of wresting the economy out of recession. Democrats predict the plan would save or create 3.5 million jobs.... The stimulus plan would provide a half-trillion dollars for jobless benefits, renewable energy projects, highway construction, food stamps, broadband, Pell college tuition grants, high-speed rail projects, and scores of other programs. The plan would pump $185 billion into the economy this year and $399 billion next year, the agency said. -Brian Faler Source: Bloomberg.com, February 13, 2009. If consumers had an MPC of 0.90, by how much would AD have eventually increased with Obama's first-year spending stimulus, assuming the stimulus was entirely government spending? billion
U.S. Congress Gives Final Approval to $787 Billion Stimulus Feb. 13 (Bloomberg)-The U.S. Congress gave final approval to President Obama's S787 billion economic stimulus package in hopes of wresting the economy out of recession. Democrats predict the plan would save or create 3.5 million jobs.... The stimulus plan would provide a half-trillion dollars for jobless benefits, renewable energy projects, highway construction, food stamps, broadband, Pell college tuition grants, high-speed rail projects, and scores of other programs. The plan would pump $185 billion into the economy this year and $399 billion next year, the agency said. -Brian Faler Source: Bloomberg.com, February 13, 2009. If consumers had an MPC of 0.90, by how much would AD have eventually increased with Obama's first-year spending stimulus, assuming the stimulus was entirely government spending? billion
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![**U.S. Congress Gives Final Approval to $787 Billion Stimulus**
**Feb. 13 (Bloomberg)**—The U.S. Congress gave final approval to President Obama’s $787 billion economic stimulus package in hopes of wresting the economy out of recession.
Democrats predict the plan would save or create 3.5 million jobs. The stimulus plan would provide a half-trillion dollars for jobless benefits, renewable energy projects, highway construction, food stamps, broadband, Pell college tuition grants, high-speed rail projects, and scores of other programs.
The plan would pump $185 billion into the economy this year and $399 billion next year, the agency said.
—Brian Faler
*Source: Bloomberg.com, February 13, 2009.*
---
**If consumers had an MPC of 0.90, by how much would AD have eventually increased with Obama’s first-year spending stimulus, assuming the stimulus was entirely government spending?**
[Empty box for answer] _____ billion](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4310c92e-bcd2-4ba6-8047-b0a5242a83fc%2Fda485e6b-9f7e-46f1-9a3b-da56d9a7ac80%2Fmfi250j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**U.S. Congress Gives Final Approval to $787 Billion Stimulus**
**Feb. 13 (Bloomberg)**—The U.S. Congress gave final approval to President Obama’s $787 billion economic stimulus package in hopes of wresting the economy out of recession.
Democrats predict the plan would save or create 3.5 million jobs. The stimulus plan would provide a half-trillion dollars for jobless benefits, renewable energy projects, highway construction, food stamps, broadband, Pell college tuition grants, high-speed rail projects, and scores of other programs.
The plan would pump $185 billion into the economy this year and $399 billion next year, the agency said.
—Brian Faler
*Source: Bloomberg.com, February 13, 2009.*
---
**If consumers had an MPC of 0.90, by how much would AD have eventually increased with Obama’s first-year spending stimulus, assuming the stimulus was entirely government spending?**
[Empty box for answer] _____ billion
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