The economy is at the Keynesian equilibrium. Assuming that taxes are zero, a decrease in the marginal propensity to consume decreases unplanned inventories in the short run.

Economics For Today
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ISBN:9781337613040
Author:Tucker
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Chapter18: The Keynesian Model
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The economy is at the Keynesian equilibrium. Assuming that taxes are zero, a decrease in the marginal propensity to consume decreases unplanned inventories in the short run.

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