Equal increases in government purchases and taxes

Reference no: EM13202149

Equal increases in government purchases and taxes will:

A. increase the equilibrium GDP and the size of that increase varies directly with the size of the MPC.
B. increase the equilibrium GDP and the size of that increase is independent of the size of the MPC.
C. increase the equilibrium GDP and the size of that increase varies inversely with the size of the MPC.
D. decrease the equilibrium GDP and the size of that decrease is independent of the size of the MPC.

Reference no: EM13202149

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