Illustrate what additional effect follow this initial affect

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Reference no: EM1358992

suppose that the govrnment reduce taxes by 20 billion,that there is no crowding out and that the marginal propensity to consume is 3/4.

1-what is the initial affect of the taxes reduction?

2-illustrate what additional effect follow this initial affect?what is the total affect of the tax cut on aggregate demand?

Reference no: EM1358992

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