Advanced Placement (AP), 24.10.2020 08:00 macybarham
1. Calculate the result of an increase in consumption of $20B on the GDPr if the MPS is .25.
2. Assume Americans spend eighty cents of each dollar of disposable income. Calculate the result of an
increase in taxes of $50M on the GDPr.
3. Calculate the result of a $100B decrease in taxes on consumption and GDPr if the MPC is 2.
Answers: 3
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1. Calculate the result of an increase in consumption of $20B on the GDPr if the MPS is .25.
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