What is the value of the MPC? 0.8 b. Assume now that a lump-sum tax is imposed such that the government collects $10 billion in taxes at all levels of GDP. Add the after- tax consumption to the table below. Answer is complete but not entirely correct. Consumption, Before Tax, Billions Lump-SumTax, Billions Consumption, After Tax, Billions GDP, Billions 100 120 10 1100 200 200 10 190 X 300 280 10 270X 400 360 10 350 X 500 440 10 430 X 600 520 10 510X 700 600 10 590 X Compare the MPC and the multiplier with those of the pretax consumption schedule. MPC after tax = 0.8 Multiplier after tax = 0.8 0 The MPC and multiplier are:

What is the value of the MPC? 0.8 b. Assume now that a lump-sum tax is imposed such that the government collects $10 billion in taxes at all levels of GDP. Add the after- tax consumption to the table below. Answer is complete but not entirely correct. Consumption, Before Tax, Billions Lump-SumTax, Billions Consumption, After Tax, Billions GDP, Billions 100 120 10 1100 200 200 10 190 X 300 280 10 270X 400 360 10 350 X 500 440 10 430 X 600 520 10 510X 700 600 10 590 X Compare the MPC and the multiplier with those of the pretax consumption schedule. MPC after tax = 0.8 Multiplier after tax = 0.8 0 The MPC and multiplier are:

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter15: Fiscal Policy

Section: Chapter Questions

Problem 19SQ

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Question

Instructions: In the table, enter your answers as a whole number. Round your answers for the MPC and the multiplier to 1 decimal
place.
What is the value of the MPC?
0.8
b. Assume now that a lump-sum tax is imposed such that the government collects $10 billion in taxes at all levels of GDP. Add the after-
tax consumption to the table below.
Answer is complete but not entirely correct.
Consumption,
Before Tax,
Billions
Lump-SumTax,
Billions
Consumption,
After Tax,
GDP, Billions
Billions
100
120
10
1101
200
200
10
190 X
300
280
10
270 X
400
360
10
350 X
500
440
10
430
600
520
10
510
700
600
10
590
Compare the MPC and the multiplier with those of the pretax consumption schedule.
MPC after tax =
0.8
Multiplier after tax =
0.8
The MPC and multiplier are:
higher before the tax.
higher after the tax.
the same before and after the tax.

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Instructions: In the table, enter your answers as a whole number. Round your answers for the MPC and the multiplier to 1 decimal place. What is the value of the MPC? b. Assume now that a lump-sum tax is imposed such that the government collects $10 billion in taxes at all levels of GDP. Add the after-tax consumption to the table below. Consumption, Before Tax, Billions Lump-SumTax, Consumption, After Тах, Bllons GDP, Billions Billions 100 120 10 200 200 10 300 280 10 400 360 10 500 440 10 600 520 10 700 600 10 Compare the MPC and the multiplier with those of the pretax consumption schedule. MPC after tax = Multiplier after tax = The MPC and multiplier are: O higher before the tax. higher after the tax. O the same before and after the tax.
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suppose the government wishes to illuminate recessionary GAP of 100 billion and the MPC is .75. How much must the government increase in spending instead of increasing government spending by the amount you calculated what would be the effect of the government decreasing taxes by this amount explain?
Please look at the attached photo and help with the answer?
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no handwritten notes!
Questions 9 and 10?❤️❤️
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