Illustrate what additional effect follow this initial, Ask an Expert

Economics

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

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9279307

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