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If the Keynesian AD shortfall is $425 billion and MPC is 0.86, calculate the size of the desired tax cut needed: a. $48.7 billion b. $69.2 billion c. $83.3 billion d. $92.6 billion e. $116.1 billion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the Keynesian AD shortfall is $425 billion and MPC is 0.86, calculate the size of the desired tax
cut needed:
a. $48.7 billion
b. $69.2 billion
c. $83.3 billion
d. $92.6 billion
e. $116.1 billion

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