How does the cut in government spending impact the budget, Finance Basics

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How does the cut in government spending impact the budget

How will a cut in Government Spending of $300 billion with a MPC equal to .75 impact AD, inflation, and output?

Why? Make sure to include the appropriate equations and graph.

B. How does the cut in Government spending impact the budget deficit and the national debt?

C. What are some (at least 4) of the pros and cons of a budget deficit and the national debt?

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Finance Basics: How does the cut in government spending impact the budget

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Finance Basics: How does the cut in government spending impact the budget

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