By how much would total spending increase over an period

Reference no: EM13219169

Given MPC (marginal propensity to consume) = 0.80, if the government implements an expansionary fiscal policy as (a) cutting taxes by $1 trillion, then by how much would total spending increase over an infinite period? (b) spending $1 trillion, then by how much would total spending increase over an infinite period?

Reference no: EM13219169

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