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1 if the govt wants to decrease rgdp by 40 billion and mpc


1. If the govt. wants to decrease RGDP by $40 billion and MPC equals 0.8, how much must the govt. increase taxes?

2. If the MPC equals 0.9 and the Pres. and Congress increase fiscal spending by $60 billion, how much will RGDP increase?

3. If the MPC equals 0.8 and the Pres. and Congress decrease income taxes by $60 billion, how much will RGDP increase?

4. If the MPC equals 0.75 and Pres. & Congress increases taxes by $30 billion and decreases govt. spending by $30 billion, how will RGDP change?

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Business Economics: 1 if the govt wants to decrease rgdp by 40 billion and mpc
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