Answer:
cutting taxes by $125 billion
Explanation:
given data
economy = 0.8
expenditure gap = $100 billion
to find out
cutting taxes
solution
we get here cutting or reduce taxes that is express as
cutting taxes = [tex]\frac{expenditure\ gap}{MPN\ economy}[/tex] ......................... 1
cutting taxes = [tex]\frac{100}{0.8}[/tex]
solve we get cutting taxes
cutting taxes = $125 billion
so cutting taxes by $125 billion
