What is the initial affect of the taxes reduction, Microeconomics

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What is the initial affect of the taxes reduction

Suppose that the govrnment reduce taxes by 20 billion, that there is no crowding out and that the marginal propensity to consume is 3/4.

1-What is the initial affect of the taxes reduction?

2-What additional effect follow this initial affect?what is the total affect of the tax cut on aggregate demand?

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Microeconomics: What is the initial affect of the taxes reduction

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Microeconomics: What is the initial affect of the taxes reduction

Reference No:- TGS065520

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Invest in the risk-free security

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Q : What is the initial affect of the taxes reduction

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: What is the initial affect of the taxes reduction

Reference No:- TGS065520

Recent Questions Asked Microeconomics

Q : Invest in the risk-free security

Q : What are the total fixed costs

Q : Federal budget deficit

Q : Federal budget deficit

Q : What is the initial affect of the taxes reduction

Q : Yen-dollar exchange rate and trade balance

Q : What is the journal entry of this transaction

Q : Benefits and costs associated with type of externality

Q : Differnces in finanical reporting

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