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Determining the change in taxes

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1. The government again wants to increase income by $2000 - this time via a change in taxes. If the MPC is 0.75, what will be the required change in taxes? (Enter only numbers, a decimal point, and a negative sign if necessary; round your answer to two decimal places and any intermediate steps to four decimal places. Enter a positive number for an increase in taxes and a negative number for a decrease.)

Reference no: EM131281417

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