Author Question: Assume that GDP = 10,000 and the MPC = 0.75. If policy makers want to increase GDP by 30 percent, ... (Read 56 times)

tingc95 · **on:** Jun 30, 2018

Assume that GDP = 10,000 and the MPC = 0.75. If policy makers want to increase GDP by 30 percent, and they want to change taxes and government spending by equal amounts, how much would government spending and taxes each need to increase?

A) 300 B) 750 C) 1,000 D) 3,000

Question 2

A commercial bank's last resort for borrowing reserves is from the:

A) discount window. B) central government.
C) federal funds market. D) foreign banks.