Suppose there are no imports, taxes or other leakages in the economy. If the Marginal Propensity to Consume is .75 and the government increases spending by $60 billion, by how much would output increase in the economy?
Suppose there are no imports, taxes or other leakages in the economy. If the Marginal Propensity to Consume is .75 and the government increases spending by $60 billion, by how much would output increase in the economy?
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 17SQ
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Suppose there are no imports, taxes or other leakages in the economy. If the Marginal Propensity to Consume is .75 and the government increases spending by $60 billion, by how much would output increase in the economy?
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