Mathematics, 15.04.2021 18:40 Lockdown

Imagine Congress wants to increase economic activity to combat the lingering effects of a recession. They estimate a trillion dollars (\$1,000,000,000) of total economic activity is needed. How much money do they actually need to distribute to the public to achieve this desired outcome? Assume the same marginal propensities as above. (Hint: they do not need to distribute a full trillion.)

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Imagine Congress wants to increase economic activity to combat the lingering effects of a recession....