# Assuming no change in government spending, an decrease in taxes of $100 billion with an MPC of 0.90 will add a total of$ billion to the economy after the multiplier effect. A. 800 B. 400 C. 500 D. 900

Assuming no change in government spending, an decrease in taxes of $100 billion with an MPC of 0.90 will add a total of$ billion to the economy after the multiplier effect. A. 800
B. 400
C. 500
D. 900

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The Effect = $900 So, an decrease in taxes of$100 billion with an MPC of 0.90 will add a total of \$900 billion to the economy after the multiplier effect.