Suppose in a simple economy with no foreign sector, the MPC is equal t – InterviewSolution

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1.	Suppose in a simple economy with no foreign sector, the MPC is equal to 0.8. If the government increased government spending by 30million,anditsimultaneouslyraisedtaxesby30 million, how much will be the change in output (∆Y)?
Answer» Suppose in a simple economy with no foreign sector, the MPC is equal to 0.8. If the government increased government spending by $30 m i l l i o n, a n d i t s i m u l t a n e o u s l y r a i s e d t a x e s b y$ 30 million, how much will be the change in output (∆Y)?

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