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2. Assume the MPC is 0.75 and policymakers have targeted real GDP to decrease by $300billion. By how much must taxes be increased to achieve this goal?

2. Assume the MPC is 0.75 and policymakers have targeted real GDP to decrease by $300billion. By how much must taxes be increased to achieve this goal?

ECON MACRO
ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 1.7P
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2. Assume the MPC is 0.75 and policymakers have targeted real GDP to decrease by $300
billion. By how much must taxes be increased to achieve this goal?

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