2. In a closed economy with no government, a $1 billion increase in initial spending leads to a $5 billion increase in total income or output. What is the multiplier? b. What is the value of marginal propensity to save? C. What is the value marginal propensity to consume? a.
2. In a closed economy with no government, a $1 billion increase in initial spending leads to a $5 billion increase in total income or output. What is the multiplier? b. What is the value of marginal propensity to save? C. What is the value marginal propensity to consume? a.
Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN:9781305280601
Author:William J. Baumol, Alan S. Blinder
Publisher:William J. Baumol, Alan S. Blinder
Chapter8: Aggregate Demand And The Powerful Consumer
Section: Chapter Questions
Problem 8DQ
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