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Business, 29.11.2019 02:31 kylahbastianoz7o1j

In the short-run keynesian model where the marginal propensity to consume is 0.75, to offset a recessionary gap resulting from a $1 billion decrease in autonomous consumption, taxes must be: (hint: first calculate the expenditure multiplier, then use this to determine the size of the gap. finally, calculate the change in taxes required to close this gap.)

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