What is the initial change in consumption if an economy's MPC is 0.75 and there is a decrease in taxes of $1 billion? O $1.75 billion O $1 billion O $1.33 billion O $0.75 billion

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 1.6P
Question
What is the initial change in consumption if an economy's MPC is 0.75 and there is a decrease in taxes of $1 billion?
O $1.75 billion
O $1 billion
O $1.33 billion
O $0.75 billion
Transcribed Image Text:What is the initial change in consumption if an economy's MPC is 0.75 and there is a decrease in taxes of $1 billion? O $1.75 billion O $1 billion O $1.33 billion O $0.75 billion
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