If the marginal propensity to consume is 0.75. When the world gets into a recession period, country X's net exports fall by $2 billion, the government can offset the effect on output if government purchases G will rise by(?)

If the marginal propensity to consume is 0.75. When the world gets into a recession period, country X's net exports fall by $2 billion, the government can offset the effect on output if government purchases G will rise by(?)

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 3DQ

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Question

If the marginal propensity to consume is 0.75.
When the world gets into a recession period,
country X's net exports fall by $2 billion, the
government can offset the effect on
output if government purchases G will rise by(?)

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