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Author Question: Assume that taxes depend on income. The MPCis 0.8 and tis 0.4. If government purchases increase by ... (Read 110 times)

lak

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  • Posts: 546
on: Apr 19, 2019

Question 1

Assume that taxes depend on income. The 
MPC is 0.5 and 
t is 0.2. If government spending increases by $10 billion, the equilibrium level of output will increase by


◦ $16.7 billion.
◦ $25 billion.
◦ $50 billion.
◦ $100 billion.

Question 2

Assume that taxes depend on income. The 
MPC is 0.8 and 
t is 0.4. If government purchases increase by $100 billion, the equilibrium level of output will increase by


◦ $16.7 billion.
◦ $57.5 billion.
◦ $192.31 billion.
◦ $215.9 billion.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by lak on Apr 19, 2019

fur

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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lak

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Reply 2 on: Apr 19, 2019
Great answer, keep it coming :)

jamesnevil303

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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