Based on the marginal propensity to consume, the required tax cut to get a $300 billion stimulus is $400 billion.
How much of a tax cut is needed?
This can be found by the formula:
= Required fiscal stimulus / Marginal propensity to consume
Solving gives:
= 300 / 0.75
= $400 billion
In conclusion $400 billion of tax cuts are needed.
Find out more on marginal propensity to consume at https://brainly.com/question/17930875.
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