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Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781337091985
BuyFind

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781337091985

Solutions

Chapter
Section
Chapter 16, Problem 10PA
Textbook Problem

In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Explain.

a. When the investment accelerator is large or when it is small?

b. When the interest sensitivity of investment is large or when it is small?

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