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If a $10 billion reduction in aggregate taxes increases equilibrium GDP by $40 billion then: a. The multiplier is 4. B. The MPC for this economy is 0.8. C. The MPC for this economy is 0.6. Dr.. The multiplier
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If a $10 billion reduction in aggregate taxes increases equilibrium GDP by $40 billion

then:

a. The multiplier is 4.

B. The MPC for this economy is 0.8.

C. The MPC for this economy is 0.6.

Dr.. The multiplier is 3.

User Santosh Gokak
by
8.5k points

1 Answer

1 vote

Answer:

C.

Step-by-Step Step-by-step explanation:

C.

User McX
by
8.0k points
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