33. What is the maximum change in equilibrium real GDP that could occur as result of a one-time $50 billion tax cut if the MPC is 0.75? a. $200 billion decrease b. $200 billion increase C. PR $150 billion decrease d. $150 billion increase
33. What is the maximum change in equilibrium real GDP that could occur as result of a one-time $50 billion tax cut if the MPC is 0.75? a. $200 billion decrease b. $200 billion increase C. PR $150 billion decrease d. $150 billion increase
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:33
33.
What is the maximum change in equilibrium real GDP that could occur as result of a
one-time $50 billion tax cut if the MPC is 0.75?
a.
$200 billion decrease
b.
$200 billion increase
C.
$150 billion decrease
d.
$150 billion increase
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