document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1150421>Question 1150421</A>: <I><SPAN STYLE=\"word-break: break-all;\"> In the Keynesian-cross model, if the MPC equals 0.75, then a $3 billion decrease in taxes increases planned expenditures by ______ and increases the equilibrium level of income by _________  </SPAN>\n" );
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document.write( "Decrease in taxes is $3 billion. Then the planned expenditures would increase by $3 billion as a result of tax decrease. The decrease in taxes is the finances increase in expenditures and as a result the level of income increases by $3 billion.\r<BR>\n" );
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document.write( "so,\r<BR>\n" );
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document.write( "In the Keynesian-cross model, if the MPC equals 0.75, then a $3 billion decrease in taxes increases planned expenditures by __$3 billion____ and increases the equilibrium level of income by ____$3 billion_____ . </SPAN>\n" );
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