Suppose mpc075 and the government pay for the new spending


Given:

Y= 5,000,000
C= 4,000,000
I= 1,000,000
G= 0
T = 0

Suppose MPC=0.75 and the government pay for the new spending of 100,000 by increasing taxes by 100,000. Calculate the new Y. Could you provide the answer with specific formulas if possible?

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Microeconomics: Suppose mpc075 and the government pay for the new spending
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