Calculate the Impact of a $96 Billion Increase in Government

question 100

Multiple Choice

Calculate the impact of a $96 billion increase in government spending on equilibrium GDP when the marginal propensity to consume is 0.8, the marginal tax rate is15% and the marginal propensity to import is 0.15.

• A)204.26
• B)480
• C)30.72
• D)274.29
• E)-0.10

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An agreement in which an underwriter commits to buying all the securities offered by the issuer and selling them to investors, taking on the full risk of selling the securities.

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