If the MPC is 0.71 and taxes decrease by $5,103, holding all else constant, real GDP will change by _____ according to the multiplier effect.

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ISBN:9781337617383
Author:Roger A. Arnold
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Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
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Question 72

If the MPC is 0.71 and taxes decrease by $5,103, holding all else constant, real GDP will change by _____ according to the multiplier effect. Please round to 2 decimal places. Be sure to include a negative sign (-) if it is a decrease and do not include a dollar sign ($) when answering.

 

Question 73

Assume a government starts with zero debt. This government then runs an annual deficit for 29 years of $4,511. At the end of those 29 years, what would be amount of the government debt? Please round to 2 decimal places if needed. Be sure to include a negative sign (-) if it is a decrease and do not include a dollar sign ($) when answering.

 

 

 
 
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