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laila [671]
2 years ago
12

What would be the net effect of the government increasing the taxes by $10 billion at the same time that it decreased spending b

y $5 billion? Assume a marginal propensity to save of 0.1.
Decreasing aggregate demand by $40 billion
Decreasing aggregate demand by $140 billion
Increasing aggregate demand by $40 billion
Increasing aggregate demand by $140 billion
The impact on aggregate demand is indeterminate.
Business
1 answer:
vazorg [7]2 years ago
4 0

Answer:

a

Explanation:

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