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Suppose in a simple economy with no foreign sector, the MPC is equal to 0.9. How much of a lump sum tax (∆T) would have to be given up to raise output by 100 million? |
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Answer» Suppose in a simple economy with no foreign sector, the MPC is equal to 0.9. How much of a lump sum tax (∆T) would have to be given up to raise output by 100 million? |
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