The marginal propensity to consume is 080 the income tax is


The marginal propensity to consume is 0.80. The income tax is equal to one-fourth of income. If the government decides to increase spending in order to increase output by Php 900,
a. By how much should government spending increase?
b. What happens to the budget deficit?

Request for Solution File

Ask an Expert for Answer!!
Econometrics: The marginal propensity to consume is 080 the income tax is
Reference No:- TGS0581574

Expected delivery within 24 Hours