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Problem

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question

Suppose the government seeks to achieve a balanced budgetby levying taxes of 100billionandmakingexpendituresof100 billion and making expendituresof 100 billion. How will this affect NNP if MPC = 0.8?
Plain-text mathematical notation (without MathML)
Suppose the government seeks to achieve a balanced budgetby levying taxes of 100billionandmakingexpendituresof100 billion. How will this affect NNP if MPC = 0.8?
Original LaTeX notation
Suppose the government seeks to achieve a balanced budgetby levying taxes of $100 billion and making expendituresof $100 billion. How will this affect NNP if MPC = 0.8?

category

economics

options

  1. Decrease of $500 billion in NNP
  2. Increase of $500 billion in NNP
  3. Decrease of $100 billion in NNP
  4. No change in NNP because taxes cancel out expenditures
  5. Increase of $200 billion in NNP
  6. Decrease of $80 billion in NNP
  7. Increase of $100 billion in NNP
  8. Increase of $50 billion in NNP
  9. No change in NNP
  10. Decrease of $20 billion in NNP

src

stemez-Economics

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