Suppose mpc075 and the government pay for the new spending
Given:
Y= 5,000,000C= 4,000,000I= 1,000,000G= 0T = 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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