1. If the marginal propensity to consume is 0.8 in an economy, a $20 billion rise in Incomes will do what to GDP? (Tell if it will increase or decrease GDP, and by how much.)
1. If the marginal propensity to consume is 0.8 in an economy, a $20 billion rise in Incomes will do what to GDP? (Tell if it will increase or decrease GDP, and by how much.)
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 5.11P
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1. If the marginal propensity to consume is 0.8 in an economy, a $20 billion rise in Incomes will do what to
2. Suppose that the level of government spending increased by $100 billion where the marginal propensity to consume is 0.5. Aggregate expenditures must have increased by:
3. The Government has a $.8 Trillion Growth target. What fiscal policy should they implement if MPS = .2?
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