Compute both tax also income multipliers

Assignment Help Business Economics

Reference no: EM1315288

Q1. Illustrate what will happen to GDP if taxes raise 100million when MPC is .75? Compute both tax also income multipliers.

Q2. Assume which the reserve ratio is 10percent (%) when the Fed sells $66,700 of U.S. Treasury bills to the system of bank. As if banking system does NOT want to hold any excess reserves,______ will be _____ the money supply.

A. $667,000; subtracted from
B. $667,000; added to
C. $250,000; subtracted from
D. $250,000; added to

Reference no: EM1315288

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