suppose that the government increases taxes and government purhcases by equal amounts.what happens to the interest rate and investment in response to this balanced - budget change? does your answer depend on the marginal propensity to consume?

suppose that the government increases taxes and government purhcases by equal amounts.what happens to the interest rate and investment in response to this balanced - budget change? does your answer depend on the marginal propensity to consume?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

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