Suppose the MPC is 0.6. Beginning from equilibrium, investment demand rises by 30. (a) How much does equilibrium output increase? (b) How much of that increase is extra consumption demand?
Suppose the MPC is 0.6. Beginning from equilibrium, investment demand rises by 30. (a) How much does equilibrium output increase? (b) How much of that increase is extra consumption demand?
Chapter21: Fiscal Policy
Section: Chapter Questions
Problem 4SQ
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Suppose the MPC is 0.6. Beginning from equilibrium, investment
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