<span>Government increases the tax rate.
Consumers have less money to spend.
</span>Producers manufacture fewer goods.
Inflationary pressure decreases.<span>
</span>
When people take money out of the bank, they have to pay them back with a little more and interest is why.<span />
The answer would to that would be A
If real GDP is $200 billion, full employment GDP is $400 billion, and the marginal propensity to consume is 0.75, then Congress should-----
increase government purchases by spending by $50 billion.
What is marginal propensity?
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.
Full employment:
is an economic situation in which all available labor resources are being used in the most efficient way possible. Full employment embodies the highest amount of skilled and unskilled labor that can be employed within an economy at any given time.
Learn more about real GDP:
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