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Explain the effects of the following actions on equilibrium income, assuming that the marginal propensity to consume is 0

Economics

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1. Explain the effects of the following actions on equilibrium income, assuming that the marginal propensity to consume is 0.75

1. Explain how fiscal policy can be used to close the (a) contractionary gap and (b) inflationary gap.
2. Discuss some of the challenges associated with expansionary fiscal policy (not less than 300 words).
3. How serious is the national debt to our economic stability? (not less than 300 words).