Suppose the economy is in a recession. The economy needs to expand by at least $300 billion, and the marginal propensity to consume is 0.7. What is the least amount the government can spend to overcome the $300 billion gap? billion

Suppose the economy is in a recession. The economy needs to expand by at least $300 billion, and the marginal propensity to consume is 0.7. What is the least amount the government can spend to overcome the $300 billion gap? 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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Suppose the economy is in a recession. The economy needs to expand by at least $300 billion, and
the marginal propensity to consume is 0.7.
What is the least amount the government can spend to overcome the $300 billion gap?
$
billion

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