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Flauer [41]
1 year ago
15

If the marginal propensity to consume (mpc) is 0.75 and if policy makers wish to increase real gdp by $300 million to fight a re

cession, then by how much would taxes have to change?
Business
1 answer:
marshall27 [118]1 year ago
7 0

The taxes have to change by $ 50 million.

<h3>What is marginal propensity?</h3>

In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.

Marginal propensity to consume is a component of Keynesian macroeconomic theory and is calculated as the change in consumption divided by the change in income.

MPC is depicted by a consumption line, which is a sloped line created by plotting the change in consumption on the vertical "y" axis and the change in income on the horizontal "x" axis.

To learn more about MPC sums, refer

brainly.com/question/20376297

#SPJ4

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