If the AD excess is $300 billion and the MPC is 0.75, Instructions: Enter your responses as whole numbers. a. How much fiscal restraint is desired? |billion b. By how much do income taxes have to be increased to get that restraint? |billion c. Alternatively, how much should government reduce its spending to achieve the target? billion %24

If the AD excess is $300 billion and the MPC is 0.75, Instructions: Enter your responses as whole numbers. a. How much fiscal restraint is desired? |billion b. By how much do income taxes have to be increased to get that restraint? |billion c. Alternatively, how much should government reduce its spending to achieve the target? billion %24

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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