In the short run Keynesian model where the marginal propensity to consume is 05

In the short run keynesian model where the marginal

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121.In the short-run Keynesian model where the marginal propensity to consume is 0.5, to offset a recessionary gap resulting from a $10 billion decrease in autonomous consumption, taxes must be: A. increased by $10 billion.B. decreased by $10 billion.C. increased by $20 billion.D.decreased by $20 billion. AACSB: Analytical Skills Blooms: Application Frank - Chapter 21 #121 Learning Objective: 21-04 Show how a change in planned aggregate expenditure can cause a change in short-run equilibrium output and how this is related to the income expenditure multiplier. Section: Stabilizing Planned Spending: The Role of Fiscal Policy
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122.In the short-run Keynesian model where the marginal propensity to consume is 0.5, to offset an expansionary gap resulting from a $10 billion increase in autonomous consumption, taxes must be: AACSB: Analytical Skills Blooms: Application Frank - Chapter 21 #122
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Learning Objective: 21-04 Show how a change in planned aggregate expenditure can cause a change in short-run equilibrium output and how this is related to the income expenditure multiplier. Section: Stabilizing Planned Spending: The Role of Fiscal Policy
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123.In the short-run Keynesian model where the marginal propensity to consume is 0.5, to offset a recessionary gap resulting from a $10 billion decrease in autonomous consumption, transfers must be: AACSB: Analytical Skills Blooms: Application Frank - Chapter 21 #123 Learning Objective: 21-04 Show how a change in planned aggregate expenditure can cause a change in short-run equilibrium output and how this is related to the income expenditure multiplier. Section: Stabilizing Planned Spending: The Role of Fiscal Policy
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124.In the short-run Keynesian model where the marginal propensity to consume is 0.5, to offset an expansionary gap resulting from a $10 billion increase in autonomous consumption, transfers must be: AACSB: Analytical Skills Blooms: Application Frank - Chapter 21 #124
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Learning Objective: 21-04 Show how a change in planned aggregate expenditure can cause a change in short-run equilibrium output and how this is related to the income expenditure multiplier. Section: Stabilizing Planned Spending: The Role of Fiscal Policy
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