If real GDP is $400 billion, full employment GDP is $800 billion, and the marginal propensity to consume is 0.5, then Congress should a. decrease taxes by $200 billion.

b. increase taxes by $400 billion.

c. increase purchases by an amount slightly more than $200 billion.

d. increase purchases by $200 billion.

e. increase purchases by $400 billion.
Please explain! Not sure how to do this type of problem!

All of the industries and businesses in the country of marksenia are privately owned and sell products at different prices that are not controlled by the government or any other organizational body. consumers in marksenia are free to buy as much of the products as they like from the businesses they want. the country of marksenia has a

1. is the act of declaring a drivers license void and terminated when it is determined that the license was issued through error or fraud.

Greenway industries is a major multinational conglomerate. its business units compete in a range of industries, including home appliances, pharmaceuticals, commercial real estate, and plastics manufacturing. although its largest business unit, which produces kitchen appliances, is among the most profitable in the industry, it generates only 35 percent of the company's revenues. which of the following is most likely true of greenway's stock price? a. it is valued at less than the sum of its individual business units. b. it is valued at greater than the sum of individual business units. c. it is valued at the exact sum of individual business units. d. it is consistently lower than the industry average.it is valued at greater than the sum of individual business units.