Illustrate what will happen to gdp if taxes raise, Ask an Expert

Economics

Q1. Illustrate what will happen to GDP if taxes raise 100million when MPC is .75? Compute both tax also income multipliers.

Q2. Assume which the reserve ratio is 10percent (%) when the Fed sells $66,700 of U.S. Treasury bills to the system of bank. As if banking system does NOT want to hold any excess reserves,______ will be _____ the money supply.

A. $667,000; subtracted from
B. $667,000; added to
C. $250,000; subtracted from
D. $250,000; added to

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9165665

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