How large is the initial spending injection

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Reference no: EM13192646

WASHINGTON-Less than one month after President Obama took office, Congress last night passed his flagship proposal, an unprecedented collection of tax cuts and new spending that Democrats say offers the country its best hope to stave off an impending depression.
After a frenzied month of legislating, the House and Senate produced an economic stimulus bill estimated yesterday to cost $787 billion, with $281 billion in new tax cuts and the remainder in one-time spending on infrastructure investments, expanded unemployment benefits, and
other programs.
It passed both chambers on a largely party-line vote, winning the support of no Republicans in the House and three in the Senate

In the tax-cut example on pages 231-233,
(a) By how much does consumer saving increase initially?
(b) How large is the initial spending injection?

Reference no: EM13192646

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