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Business, 12.12.2020 17:10 emilyf05

If the MPC is 0.80 and the government increases spending on cancer research by $15 billion.(a) What is the value of the initial impact on real GDP? What is the value of the total impact on real GDP? What effect do you think a $50 billion increase in government spending will have on the economy?(b) Assume the MPC is 0.80 and policy makers have targeted real GDP to increase by $200 billion. By how much must taxes be reduced to achieve this goal?

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If the MPC is 0.80 and the government increases spending on cancer research by $15 billion.(a) What...
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